49–008 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–655 

PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE 

BILL (H.R. 83) TO REQUIRE THE SECRETARY OF THE INTERIOR TO ASSEMBLE A TEAM OF TECHNICAL, POLICY, AND FINANCIAL EXPERTS TO 

ADDRESS THE ENERGY NEEDS OF THE INSULAR AREAS OF THE UNITED 

STATES AND THE FREELY ASSOCIATED STATES THROUGH THE DEVELOPMENT OF ENERGY ACTION PLANS AIMED AT PROMOTING ACCESS TO 

AFFORDABLE, RELIABLE ENERGY, INCLUDING INCREASING USE OF INDIGENOUS CLEAN–ENERGY RESOURCES, AND FOR OTHER PURPOSES; 

WAIVING A REQUIREMENT OF CLAUSE 6(A) OF RULE XIII WITH RESPECT 

TO CONSIDERATION OF CERTAIN RESOLUTIONS REPORTED FROM THE 

COMMITTEE ON RULES; AND FOR OTHER PURPOSES 

DECEMBER 10, 2014.—Referred to the House Calendar and ordered to be printed 

Mr. COLE, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 776] 

The Committee on Rules, having had under consideration House 

Resolution 776, by a record vote of 9 to 4, report the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for the consideration of the Senate 

amendment to H.R. 83, to require the Secretary of the Interior to 

assemble a team of technical, policy, and financial experts to address the energy needs of the insular areas of the United States 

and the Freely Associated States through the development of energy action plans aimed at promoting access to affordable, reliable 

energy, including increasing use of indigenous clean-energy resources, and for other purposes. The resolution makes in order a 

motion offered by the chair of the Committee on Appropriations or 

his designee that the House concur in the Senate amendment to 

H.R. 83 with an amendment consisting of the text of Rules Committee Print 113–59 modified by the amendment printed in this report. The resolution waives all points of order against consideration 

of the motion. The resolution provides that the Senate amendment 

and the motion shall be considered as read. The resolution provides 

80 minutes of debate on the motion, with 60 minutes equally divided and controlled by the chair and ranking minority member of 

the Committee on Appropriations and 20 minutes equally divided 


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and controlled by the chair and ranking minority member of the 

Committee on Education and the Workforce. 

Section 2 of the resolution provides that upon adoption of the motion specified in section 1, H. Con. Res. 122 (enrollment correction 

to the title) shall be considered as adopted. 

Section 3 of the resolution provides that the chair of the Committee on Appropriations may insert in the Congressional Record 

at any time during the remainder of the second session of the 

113th Congress such material as he may deem explanatory of the 

Senate amendment and the motion specified in the first section of 

the resolution. 

Section 4 of the resolution waives clause 6(a) of rule XIII (requiring a two-thirds vote to consider a rule on the same day it is reported from the Rules Committee) against any resolution reported 

from the Rules Committee through the legislative day of December 

12, 2014. 

EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the motion includes a waiver of the following: • Section 302(f) of the Congressional Budget Act, which prohibits consideration of legislation providing new budget authority in excess of a subcommittee’s 302(b) allocation of such authority; • Section 306 of the Congressional Budget Act, which prohibits consideration of legislation within the jurisdiction of the 

Committee on the Budget unless referred to or reported by the 

Budget Committee; • Section 601 of H. Con. Res. 25, which provides that any 

bill or joint resolution, or amendment thereto or conference report thereon, making a general appropriation or continuing appropriation may not provide for advance appropriations; • Clause 7 of rule XVI, which requires that no motion or 

proposition on a subject different from that under consideration shall be admitted under color of amendment; • Clause 4 of rule XXI, which prohibits consideration of an 

amendment proposing an appropriation to a bill reported by a 

committee not having that jurisdiction; and • Clause 5(a) of rule XXI, which prohibits consideration of 

an amendment in the House carrying a tax or tariff measure 

to a bill or joint resolution reported by a committee not having 

that jurisdiction. 

It is important to note that while the bill exceeds the budget authority provided in the committee’s 302(b) allocations, the overall 

bill falls below the statutory discretionary spending caps. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 204 

Motion by Ms. Slaughter to make in order and provide the appropriate waivers for amendment #20, offered by Rep. Jeffries (NY), 

which prevents the Department of Justice from using funding to 


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prevent the state of New York from implementing its recently 

passed medical marijuana laws. New York passed a law in July, 

2014, prior to this amendment being passed on the floor, but within 

the spirit of the exemption. Defeated: 4–8 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. ...................

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 205 

Motion by Ms. Slaughter to make in order and provide the appropriate waivers for amendment #3, offered by Rep. Coffman (CO), 

which prohibits U.S. funds from being used to pay the salaries of 

the Iraqi security forces or to provide weapons or equipment to the 

Iraqi security forces. Defeated: 4–8 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. ...................

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 206 

Motion by Mr. McGovern to provide that the Kline-Miller pension 

reform amendment be made in order as a stand-alone amendment, 

with one hour of debate, evenly divided between the proponent and 

an opponent. Defeated: 4–8 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. ...................

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 207 

Motion by Mr. McGovern to make in order and provide the appropriate waivers for amendment #7, offered by Rep. McGovern 

(MA) and Rep. Jones (NC), which provides that no funds may be 

used to deploy U.S. ground forces in a combat role in Iraq, Syria, 

or other countries in the region related to Operation Inherent Resolve. Defeated: 4–8 


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Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. ...................

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 208 

Motion by Mr. McGovern to make in order and provide the appropriate waivers for amendment #12, offered by Rep. McGovern 

(MA), Rep. Huffman (CA), and Rep. DeLauro (CT), which strikes 

two sections that weaken the Child Nutrition Act regarding sodium 

and whole grains and one section that weakens WIC regarding 

white potatoes. Defeated: 4–9 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. Nay 

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 209 

Motion by Mr. McGovern to make in order and provide the appropriate waivers for amendment #15, offered by Rep. McGovern 

(MA), which strikes language included in the bill that suspends 

DOT provisions requiring drivers to be off duty from 1 a.m. to 5 

a.m. on 2 consecutive days before restarting their weekly work 

clock. The amendment also strikes language that suspends the requirement that 168 hours (7 days) elapse before a driver can start 

a new week. Defeated: 4–9 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. Nay 

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 210 

Motion by Mr. McGovern to make in order and provide the appropriate waivers for amendment #13, offered by Rep. Deutch (FL), 

Rep. Edwards (MD), Rep. Hastings (FL), Rep. McGovern (MA), 

Rep. Polis (CO), and Rep. Sarbanes (MD), which strikes provisions 

creating new accounts to allow individual donors to contribute up 


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to an additional $680,400 annually to national party committees 

and congressional campaign committees. Defeated: 4–9 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. Nay 

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 211 

Motion by Mr. McGovern to make in order and provide the appropriate waivers for amendment #10, offered by Rep. Lowey (NY), 

which strikes the SWAPs push-out language and the provision raising contribution limits to national parties. Defeated: 4–9 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. Nay 

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 212 

Motion by Mr. Polis to add a section to the resolution to bring 

up H.R. 15, the House version of the Senate bipartisan, comprehensive immigration reform bill, under a closed rule. Defeated: 5–8 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... Yea 

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... Yea 

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. Yea 

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 213 

Motion by Ms. Foxx to report the rule. Adopted: 9–4 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Yea Ms. Slaughter .................................................. Nay 

Mr. Bishop of Utah .......................................... Yea Mr. McGovern ................................................... Nay 

Mr. Cole ............................................................ Yea Mr. Hastings of Florida ................................... Nay 

Mr. Woodall ...................................................... Yea Mr. Polis ........................................................... Nay 

Mr. Nugent ....................................................... Yea 

Mr. Webster ...................................................... Yea 

Ms. Ros-Lehtinen ............................................. Yea 

Mr. Burgess ...................................................... Yea 

Mr. Sessions, Chairman ................................... Yea 


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SUMMARY OF THE AMENDMENT TO THE HOUSE AMENDMENT TO THE

SENATE AMENDMENT TO H.R. 83 CONSIDERED AS ADOPTED

Kline (MN), Miller, George (CA): Addresses pension reforms in 

two areas. First, the bipartisan pension reforms in Division O will 

permit trustees of severely underfunded plans to adjust vested benefits, enabling deeply troubled plans to survive without a federal 

bailout; require approval by plan participants of any proposed benefit adjustments that take effect, with a fail-safe mechanism for 

those plans that present a systemic risk the multiemployer pension 

system; provide participant protections to safeguard the most vulnerable retirees, including disabled retirees and individuals age 75 

and older; give the Pension Benefit Guaranty Corporation (PBGC) 

the authority to take earlier action to help save failing plans, thereby reducing potential future costs; and adjust the premium structure in order to place the PBGC on more firm financial ground. 

Second, the bipartisan amendments in Division P amend the rules 

relating to PBGC enforcement and the rules governing certain 

charity and nonprofit pension plans. Also provides for the budgetary treatment of these divisions. 

TEXT OF THE AMENDMENT TO THE HOUSE AMENDMENT TO THE

SENATE AMENDMENT TO H.R. 83 CONSIDERED AS ADOPTED

At the end, add the following (and update the table of contents 

accordingly): 

DIVISION O—MULTIEMPLOYER 

PENSION REFORM 

SECTION 1. SHORT TITLE. 

This division may be cited as the ‘‘Multiemployer Pension Reform 

Act of 2014’’. 

SEC. 2. TABLE OF CONTENTS. 

The table of contents for this division is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of Contents. 

TITLE I—MODIFICATIONS TO MULTIEMPLOYER PLAN RULES 

Subtitle A—Amendments to Pension Protection Act of 2006 

Sec. 101. Repeal of sunset of PPA funding rules. 

Sec. 102. Election to be in critical status. 

Sec. 103. Clarification of rule for emergence from critical status. 

Sec. 104. Endangered status not applicable if no additional action is required. 

Sec. 105. Correct endangered status funding improvement plan target funded percentage. 

Sec. 106. Conforming endangered status and critical status rules during funding 

improvement and rehabilitation plan adoption periods. 

Sec. 107. Corrective plan schedules when parties fail to adopt in bargaining. 

Sec. 108. Repeal of reorganization rules for multiemployer plans. 

Sec. 109. Disregard of certain contribution increases for withdrawal liability purposes. 

Sec. 110. Guarantee for pre-retirement survivor annuities under multiemployer 

pension plans. 

Sec. 111. Required disclosure of multiemployer plan information. 


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Subtitle B—Multiemployer Plan Mergers and Partitions 

Sec. 121. Mergers. 

Sec. 122. Partitions of eligible multiemployer plans. 

Subtitle C—Strengthening the Pension Benefit Guaranty Corporation 

Sec. 131. Premium increases for multiemployer plans. 

TITLE II—REMEDIATION MEASURES FOR DEEPLY TROUBLED PLANS 

Sec. 201. Conditions, limitations, distribution and notice requirements, and approval process for benefit suspensions under multiemployer plans in 

critical and declining status. 

TITLE I—MODIFICATIONS TO 

MULTIEMPLOYER PLAN RULES 

Subtitle A—Amendments to Pension 

Protection Act of 2006 

SEC. 101. REPEAL OF SUNSET OF PPA FUNDING RULES. 

(a) IN GENERAL.—Subtitle C of title II of the Pension Protection 

Act of 2006 (26 U.S.C. 412 note) is repealed. 

(b) CONFORMING AMENDMENTS.— 

(1) AMENDMENT TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.—Section 304(d)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1084) is amended by 

striking subparagraph (C). 

(2) AMENDMENT TO INTERNAL REVENUE CODE.—Section 

431(d)(1) of the Internal Revenue Code of 1986 is amended by 

striking subparagraph (C). 

SEC. 102. ELECTION TO BE IN CRITICAL STATUS. 

(a) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.— 

(1) IN GENERAL.—Section 305(b) of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1085(b)) is amended by 

adding at the end the following: 

‘‘(4) ELECTION TO BE IN CRITICAL STATUS.—Notwithstanding 

paragraph (2) and subject to paragraph (3)(B)(iv)— 

‘‘(A) the plan sponsor of a multiemployer plan that is not 

in critical status for a plan year but that is projected by 

the plan actuary, pursuant to the determination under 

paragraph (3), to be in critical status in any of the succeeding 5 plan years may, not later than 30 days after the 

date of the certification under paragraph (3)(A), elect to be 

in critical status effective for the current plan year, 

‘‘(B) the plan year in which the plan sponsor elects to be 

in critical status under subparagraph (A) shall be treated 

for purposes of this section as the first year in which the 

plan is in critical status, regardless of the date on which 

the plan first satisfies the criteria for critical status under 

paragraph (2), and 

‘‘(C) a plan that is in critical status under this paragraph shall not emerge from critical status except in accordance with subsection (e)(4)(B).’’. 

(2) ANNUAL CERTIFICATION.— 


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(A) IN GENERAL.—Section 305(b)(3)(A)(i) of such Act (29 

U.S.C. 1085(b)(3)(A)(i)) is amended by striking ‘‘, and’’ and 

inserting ‘‘or for any of the succeeding 5 plan years, and’’. 

(B) ACTUARIAL PROJECTIONS.—Section 305(b)(3)(B) of 

such Act (29 U.S.C. 1085(b)(3)(B)) is amended— 

(i) in clause (i), by striking ‘‘In making the determinations’’ and inserting ‘‘Except as provided in clause 

(iv), in making the determinations’’; and 

(ii) by adding at the end the following: 

‘‘(iv) PROJECTIONS RELATING TO CRITICAL STATUS IN

SUCCEEDING PLAN YEARS.—Clauses (i) and (ii) (other 

than the 2nd sentence of clause (i)) may be disregarded by a plan actuary in the case of any certification of whether a plan will be in critical status in a 

succeeding plan year, except that a plan sponsor may 

not elect to be in critical status for a plan year under 

paragraph (4) in any case in which the certification 

upon which such election would be based is made 

without regard to such clauses.’’. 

(3) NOTICE.— 

(A) OF ELECTION TO BE IN CRITICAL STATUS.—Section 

305(b)(3)(D)(i) of such Act (29 U.S.C. 1085(b)(3)(D)(i)) is 

amended— 

(i) by inserting after ‘‘for a plan year’’ the following: 

‘‘or in which a plan sponsor elects to be in critical status for a plan year under paragraph (4)’’; and 

(ii) by adding at the end the following: ‘‘In any case 

in which a plan sponsor elects to be in critical status 

for a plan year under paragraph (4), the plan sponsor 

shall notify the Secretary of the Treasury of such election not later than 30 days after the date of such certification or such other time as the Secretary of the 

Treasury may prescribe by regulations or other guidance.’’ 

(B) OF PROJECTION TO BE IN CRITICAL STATUS IN A FUTURE PLAN YEAR.—Section 305(b)(3)(D) of such Act (29 

U.S.C. 1085(b)(3)(D)) is amended by adding at the end the 

following: 

‘‘(iv) NOTICE OF PROJECTION TO BE IN CRITICAL STATUS IN A FUTURE PLAN YEAR.—In any case in which it 

is certified under subparagraph (A)(i) that a multiemployer plan will be in critical status for any of 5 succeeding plan years (but not for the current plan year) 

and the plan sponsor of such plan has not made an 

election to be in critical status for the plan year under 

paragraph (4), the plan sponsor shall, not later than 

30 days after the date of the certification, provide notification of the projected critical status to the Pension 

Benefit Guaranty Corporation.’’. 

(b) AMENDMENTS TO INTERNAL REVENUE CODE.— 

(1) IN GENERAL.—Section 432(b) of the Internal Revenue 

Code of 1986 is amended by adding at the end the following: 

‘‘(4) ELECTION TO BE IN CRITICAL STATUS.—Notwithstanding 

paragraph (2) and subject to paragraph (3)(B)(iv)— 


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‘‘(A) the plan sponsor of a multiemployer plan that is not 

in critical status for a plan year but that is projected by 

the plan actuary, pursuant to the determination under 

paragraph (3), to be in critical status in any of the succeeding 5 plan years may, not later than 30 days after the 

date of the certification under paragraph (3)(A), elect to be 

in critical status effective for the current plan year, 

‘‘(B) the plan year in which the plan sponsor elects to be 

in critical status under subparagraph (A) shall be treated 

for purposes of this section as the first year in which the 

plan is in critical status, regardless of the date on which 

the plan first satisfies the criteria for critical status under 

paragraph (2), and 

‘‘(C) a plan that is in critical status under this paragraph shall not emerge from critical status except in accordance with subsection (e)(4)(B).’’. 

(2) ANNUAL CERTIFICATION.— 

(A) IN GENERAL.—Section 432(b)(3)(A)(i) of such Code is 

amended by striking ‘‘, and’’ and inserting ‘‘or for any of 

the succeeding 5 plan years, and’’. 

(B) ACTUARIAL PROJECTIONS.—Section 432(b)(3)(B) of 

such Code is amended— 

(i) in clause (i), by striking ‘‘In making the determinations’’ and inserting ‘‘Except as provided in clause 

(iv), in making the determinations’’; and 

(ii) by adding at the end the following: 

‘‘(iv) PROJECTIONS RELATING TO CRITICAL STATUS IN

SUCCEEDING PLAN YEARS.—Clauses (i) and (ii) (other 

than the 2nd sentence of clause (i)) may be disregarded by a plan actuary in the case of any certification of whether a plan will be in critical status in a 

succeeding plan year, except that a plan sponsor may 

not elect to be in critical status for a plan year under 

paragraph (4) in any case in which the certification 

upon which such election would be based is made 

without regard to such clauses.’’. 

(3) NOTICE.— (A) OF ELECTION TO BE IN CRITICAL STATUS.—Section 

432(b)(3)(D)(i) of such Code is amended— 

(i) by inserting after ‘‘for a plan year’’ the following: 

‘‘or in which a plan sponsor elects to be in critical status for a plan year under paragraph (4)’’; and 

(ii) by adding at the end the following: ‘‘In any case 

in which a plan sponsor elects to be in critical status 

for a plan year under paragraph (4), the plan sponsor 

shall notify the Secretary of such election not later 

than 30 days after the date of such certification or 

such other time as the Secretary may prescribe by regulations or other guidance.’’. 

(B) OF PROJECTION TO BE IN CRITICAL STATUS IN A FU- TURE PLAN YEAR.—Section 432(b)(3)(D) of such Code is 

amended by adding at the end the following: 

‘‘(iv) NOTICE OF PROJECTION TO BE IN CRITICAL STATUS IN A FUTURE PLAN YEAR.—In any case in which it 

is certified under subparagraph (A)(i) that a multiemVerDate Sep 11 2014 11:06 Dec 11, 2014 Jkt 049008 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR655.XXX HR655

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ployer plan will be in critical status for any of 5 succeeding plan years (but not for the current plan year) 

and the plan sponsor of such plan has not made an 

election to be in critical status for the plan year under 

paragraph (4), the plan sponsor shall, not later than 

30 days after the date of the certification, provide notification of the projected critical status to the Pension 

Benefit Guaranty Corporation.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

SEC. 103. CLARIFICATION OF RULE FOR EMERGENCE FROM CRITICAL 

STATUS. 

(a) AMENDMENT TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.—Section 305(e)(4)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085(e)(4)(B)) is amended to 

read as follows: 

‘‘(B) EMERGENCE.— ‘‘(i) IN GENERAL.—A plan in critical status shall remain in such status until a plan year for which the 

plan actuary certifies, in accordance with subsection 

(b)(3)(A), that— 

‘‘(I) the plan is not described in one or more of 

the subparagraphs in subsection (b)(2) as of the 

beginning of the plan year; 

‘‘(II) the plan is not projected to have an accumulated funding deficiency for the plan year or 

any of the 9 succeeding plan years, without regard 

to the use of the shortfall method but taking into 

account any extension of amortization periods 

under section 304(d)(2) or section 304 (as in effect 

prior to the enactment of the Pension Protection 

Act of 2006); and 

‘‘(III) the plan is not projected to become insolvent within the meaning of section 4245 for any of 

the 30 succeeding plan years. 

‘‘(ii) PLANS WITH CERTAIN AMORTIZATION EXTENSIONS.— 

‘‘(I) SPECIAL EMERGENCE RULE.—Notwithstanding clause (i), a plan in critical status that 

has an automatic extension of amortization periods under section 304(d)(1) shall no longer be in 

critical status if the plan actuary certifies for a 

plan year, in accordance with subsection (b)(3)(A), 

that— 

‘‘(aa) the plan is not projected to have an accumulated funding deficiency for the plan 

year or any of the 9 succeeding plan years, 

without regard to the use of the shortfall 

method but taking into account any extension 

of amortization periods under section 

304(d)(1); and 

‘‘(bb) the plan is not projected to become insolvent within the meaning of section 4245 for 

any of the 30 succeeding plan years, 


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regardless of whether the plan is described in one 

or more of the subparagraphs in subsection (b)(2) 

as of the beginning of the plan year. 

‘‘(II) REENTRY INTO CRITICAL STATUS.—A plan 

that emerges from critical status under subclause 

(I) shall not reenter critical status for any subsequent plan year unless— 

‘‘(aa) the plan is projected to have an accumulated funding deficiency for the plan year 

or any of the 9 succeeding plan years, without 

regard to the use of the shortfall method but 

taking into account any extension of amortization periods under section 304(d); or 

‘‘(bb) the plan is projected to become insolvent within the meaning of section 4245 for 

any of the 30 succeeding plan years.’’. 

(b) AMENDMENT TO THE INTERNAL REVENUE CODE.—Section 

432(e)(4)(B) of the Internal Revenue Code of 1986 is amended to 

read as follows: 

‘‘(B) EMERGENCE.— 

‘‘(i) IN GENERAL.—A plan in critical status shall remain in such status until a plan year for which the 

plan actuary certifies, in accordance with subsection 

(b)(3)(A), that— 

‘‘(I) the plan is not described in one or more of 

the subparagraphs in subsection (b)(2) as of the 

beginning of the plan year, 

‘‘(II) the plan is not projected to have an accumulated funding deficiency for the plan year or 

any of the 9 succeeding plan years, without regard 

to the use of the shortfall method but taking into 

account any extension of amortization periods 

under section 431(d)(2) or section 412(e) (as in effect prior to the enactment of the Pension Protection Act of 2006), and 

‘‘(III) the plan is not projected to become insolvent within the meaning of section 418E for any 

of the 30 succeeding plan years. 

‘‘(ii) PLANS WITH CERTAIN AMORTIZATION EXTENSIONS.— 

‘‘(I) SPECIAL EMERGENCE RULE.—Notwithstanding clause (i), a plan in critical status that 

has an automatic extension of amortization periods under section 431(d)(1) shall no longer be in 

critical status if the plan actuary certifies for a 

plan year, in accordance with subsection (b)(3)(A), 

that— 

‘‘(aa) the plan is not projected to have an accumulated funding deficiency for the plan 

year or any of the 9 succeeding plan years, 

without regard to the use of the shortfall 

method but taking into account any extension 

of amortization periods under section 

431(d)(1), and 


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‘‘(bb) the plan is not projected to become insolvent within the meaning of section 418E 

for any of the 30 succeeding plan years, 

regardless of whether the plan is described in one 

or more of the subparagraphs in subsection (b)(2) 

as of the beginning of the plan year. 

‘‘(II) REENTRY INTO CRITICAL STATUS.—A plan 

that emerges from critical status under subclause 

(I) shall not reenter critical status for any subsequent plan year unless— 

‘‘(aa) the plan is projected to have an accumulated funding deficiency for the plan year 

or any of the 9 succeeding plan years, without 

regard to the use of the shortfall method but 

taking into account any extension of amortization periods under section 431(d), or 

‘‘(bb) the plan is projected to become insolvent within the meaning of section 418E for 

any of the 30 succeeding plan years.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

SEC. 104. ENDANGERED STATUS NOT APPLICABLE IF NO ADDITIONAL 

ACTION IS REQUIRED. 

(a) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.— 

(1) IN GENERAL.—Section 305(b) of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1085(b)), as amended 

by section 102, is further amended— 

(A) in paragraph (1), by striking ‘‘the plan is not in critical status for the plan year’’ and inserting ‘‘the plan is not 

in critical status for the plan year and is not described in 

paragraph (5),’’; and 

(B) by adding at the end the following: 

‘‘(5) SPECIAL RULE.—A plan is described in this paragraph 

if— 

‘‘(A) as part of the actuarial certification of endangered 

status under paragraph (3)(A) for the plan year, the plan 

actuary certifies that the plan is projected to no longer be 

described in either paragraph (1)(A) or paragraph (1)(B) as 

of the end of the tenth plan year ending after the plan 

year to which the certification relates, and 

‘‘(B) the plan was not in critical or endangered status for 

the immediately preceding plan year.’’. 

(2) NOTICE.—Section 305(b)(3)(D) of such Act (29 U.S.C. 

1085(b)(3)(D)) is amended— 

(A) by redesignating clause (iii) and clause (iv) (as added 

by section 102(a)(3)(B)) as clauses (iv) and (v), respectively; 

and 

(B) by inserting after clause (ii) the following: 

‘‘(iii) In the case of a multiemployer plan that would 

be in endangered status but for paragraph (5), the 

plan sponsor shall provide notice to the bargaining 

parties and the Pension Benefit Guaranty Corporation 


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that the plan would be in endangered status but for 

such paragraph.’’. 

(C) in clause (iv) (as redesignated by subparagraph (A)), 

by striking ‘‘clause (ii)’’ and inserting ‘‘clauses (ii) and (iii)’’. 

(3) CONFORMING AMENDMENT.—Section 305(b)(3)(A)(i) of such 

Act (29 U.S.C. 1085(b)(3)(A)(i)) is amended by inserting after 

‘‘endangered status for a plan year’’ the following: ‘‘, or would 

be in endangered status for such plan year but for paragraph 

(5),’’. 

(b) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.— 

(1) IN GENERAL.—Section 432(b) of the Internal Revenue 

Code of 1986, as amended by section 102, is further amended— 

(A) in paragraph (1), by striking ‘‘the plan is not in critical status for the plan year’’ and inserting ‘‘the plan is not 

in critical status for the plan year and is not described in 

paragraph (5),’’; and 

(B) by adding at the end the following: 

‘‘(5) SPECIAL RULE.—A plan is described in this paragraph 

if— 

‘‘(A) as part of the actuarial certification of endangered 

status under paragraph (3)(A) for the plan year, the plan 

actuary certifies that the plan is projected to no longer be 

described in either paragraph (1)(A) or paragraph (1)(B) as 

of the end of the tenth plan year ending after the plan 

year to which the certification relates, and 

‘‘(B) the plan was not in critical or endangered status for 

the immediately preceding plan year.’’. 

(2) NOTICE.—Section 432(b)(3)(D) of such Code is amended— 

(A) by redesignating clause (iii) and clause (iv) (as added 

by section 102(b)(3)(B)) as clauses (iv) and (v), respectively; 

and 

(B) by inserting after clause (ii) the following: 

‘‘(iii) In the case of a multiemployer plan that would 

be in endangered status but for paragraph (5), the 

plan sponsor shall provide notice to the bargaining 

parties and the Pension Benefit Guaranty Corporation 

that the plan would be in endangered status but for 

such paragraph.’’. 

(C) in clause (iv) (as redesignated by subparagraph (A)), 

by striking ‘‘clause (ii)’’ and inserting ‘‘clauses (ii) and (iii)’’. 

(3) CONFORMING AMENDMENT.—Section 432(b)(3)(A)(i) of such 

Code is amended by inserting after ‘‘endangered status for a 

plan year’’ the following: ‘‘, or would be in endangered status 

for such plan year but for paragraph (5),’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

SEC. 105. CORRECT ENDANGERED STATUS FUNDING IMPROVEMENT 

PLAN TARGET FUNDED PERCENTAGE. 

(a) AMENDMENT TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.—Section 305(c)(3)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085(c)(3)(A)) is amended— 

(1) in clause (i)(I), by striking ‘‘of such period’’ and inserting 

‘‘of the first plan year for which the plan is certified to be in 

endangered status pursuant to paragraph (b)(3)’’; and 


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(2) in clause (ii), by striking ‘‘any plan year’’ and inserting 

‘‘the last plan year’’. 

(b) AMENDMENT TO INTERNAL REVENUE CODE.—Section 

432(c)(3)(A) of the Internal Revenue Code of 1986 is amended— 

(1) in clause (i)(I), by striking ‘‘of such period’’ and inserting 

‘‘of the first plan year for which the plan is certified to be in 

endangered status pursuant to paragraph (b)(3)’’; and 

(2) in clause (ii), by striking ‘‘any plan year’’ and inserting 

‘‘the last plan year’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

SEC. 106. CONFORMING ENDANGERED STATUS AND CRITICAL STATUS 

RULES DURING FUNDING IMPROVEMENT AND REHABILITATION PLAN ADOPTION PERIODS. 

(a) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.—Section 305(d) of the Employee Retirement Income 

Security Act of 1974 (29 U.S.C. 1085(d)) is amended to read as follows: 

‘‘(d) RULES FOR OPERATION OF PLAN DURING ADOPTION AND IM- PROVEMENT PERIODS.— ‘‘(1) COMPLIANCE WITH FUNDING IMPROVEMENT PLAN.— ‘‘(A) IN GENERAL.—A plan may not be amended after the 

date of the adoption of a funding improvement plan under 

subsection (c) so as to be inconsistent with the funding improvement plan. 

‘‘(B) SPECIAL RULES FOR BENEFIT INCREASES.—A plan 

may not be amended after the date of the adoption of a 

funding improvement plan under subsection (c) so as to increase benefits, including future benefit accruals, unless 

the plan actuary certifies that such increase is paid for out 

of additional contributions not contemplated by the funding improvement plan, and, after taking into account the 

benefit increase, the multiemployer plan still is reasonably 

expected to meet the applicable benchmark on the schedule contemplated in the funding improvement plan. 

‘‘(2) SPECIAL RULES FOR PLAN ADOPTION PERIOD.—During the 

period beginning on the date of the certification under subsection (b)(3)(A) for the initial determination year and ending 

on the date of the adoption of a funding improvement plan— 

‘‘(A) the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect 

to the multiemployer plan that provides for— 

‘‘(i) a reduction in the level of contributions for any 

participants, 

‘‘(ii) a suspension of contributions with respect to 

any period of service, or 

‘‘(iii) any new direct or indirect exclusion of younger 

or newly hired employees from plan participation, and 

‘‘(B) no amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits, 

any change in the accrual of benefits, or any change in the 

rate at which benefits become nonforfeitable under the 

plan may be adopted unless the amendment is required as 

a condition of qualification under part I of subchapter D of 


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chapter 1 of the Internal Revenue Code of 1986 or to comply with other applicable law.’’. 

(b) AMENDMENTS TO INTERNAL REVENUE CODE.—Section 432(d) 

of the Internal Revenue Code of 1986 is amended to read as follows: 

‘‘(d) RULES FOR OPERATION OF PLAN DURING ADOPTION AND IM- PROVEMENT PERIODS.— ‘‘(1) COMPLIANCE WITH FUNDING IMPROVEMENT PLAN.— ‘‘(A) IN GENERAL.—A plan may not be amended after the 

date of the adoption of a funding improvement plan under 

subsection (c) so as to be inconsistent with the funding improvement plan. 

‘‘(B) SPECIAL RULES FOR BENEFIT INCREASES.—A plan 

may not be amended after the date of the adoption of a 

funding improvement plan under subsection (c) so as to increase benefits, including future benefit accruals, unless 

the plan actuary certifies that such increase is paid for out 

of additional contributions not contemplated by the funding improvement plan, and, after taking into account the 

benefit increase, the multiemployer plan still is reasonably 

expected to meet the applicable benchmark on the schedule contemplated in the funding improvement plan. 

‘‘(2) SPECIAL RULES FOR PLAN ADOPTION PERIOD.—During the 

period beginning on the date of the certification under subsection (b)(3)(A) for the initial determination year and ending 

on the date of the adoption of a funding improvement plan— 

‘‘(A) the plan sponsor may not accept a collective bargaining agreement or participation agreement with respect 

to the multiemployer plan that provides for— 

‘‘(i) a reduction in the level of contributions for any 

participants, 

‘‘(ii) a suspension of contributions with respect to 

any period of service, or 

‘‘(iii) any new direct or indirect exclusion of younger 

or newly hired employees from plan participation, and 

‘‘(B) no amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits, 

any change in the accrual of benefits, or any change in the 

rate at which benefits become nonforfeitable under the 

plan may be adopted unless the amendment is required as 

a condition of qualification under part I of subchapter D of 

chapter 1 or to comply with other applicable law.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

SEC. 107. CORRECTIVE PLAN SCHEDULES WHEN PARTIES FAIL TO 

ADOPT IN BARGAINING. 

(a) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.—Section 305 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085) is amended— 

(1) in subsection (c), by amending paragraph (7) to read as 

follows: 

‘‘(7) IMPOSITION OF SCHEDULE WHERE FAILURE TO ADOPT

FUNDING IMPROVEMENT PLAN.— 

‘‘(A) INITIAL CONTRIBUTION SCHEDULE.—If— 


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‘‘(i) a collective bargaining agreement providing for 

contributions under a multiemployer plan that was in 

effect at the time the plan entered endangered status 

expires, and 

‘‘(ii) after receiving one or more schedules from the 

plan sponsor under paragraph (1)(B), the bargaining 

parties with respect to such agreement fail to adopt a 

contribution schedule with terms consistent with the 

funding improvement plan and a schedule from the 

plan sponsor, 

the plan sponsor shall implement the schedule described 

in paragraph (1)(B)(i)(I) beginning on the date specified in 

subparagraph (C). 

‘‘(B) SUBSEQUENT CONTRIBUTION SCHEDULE.—If— 

‘‘(i) a collective bargaining agreement providing for 

contributions under a multiemployer plan in accordance with a schedule provided by the plan sponsor 

pursuant to a funding improvement plan (or imposed 

under subparagraph (A)) expires while the plan is still 

in endangered status, and 

‘‘(ii) after receiving one or more updated schedules 

from the plan sponsor under paragraph (6)(B), the bargaining parties with respect to such agreement fail to 

adopt a contribution schedule with terms consistent 

with the updated funding improvement plan and a 

schedule from the plan sponsor, 

then the contribution schedule applicable under the expired collective bargaining agreement, as updated and in 

effect on the date the collective bargaining agreement expires, shall be implemented by the plan sponsor beginning 

on the date specified in subparagraph (C). 

‘‘(C) DATE OF IMPLEMENTATION.—The date specified in 

this subparagraph is the date which is 180 days after the 

date on which the collective bargaining agreement described in subparagraph (A) or (B) expires. 

‘‘(D) FAILURE TO MAKE SCHEDULED CONTRIBUTIONS.—Any 

failure to make a contribution under a schedule of contribution rates provided under this paragraph shall be 

treated as a delinquent contribution under section 515 and 

shall be enforceable as such.’’, 

(2) in subsection (e)(3), by amending subparagraph (C) to 

read as follows: 

‘‘(C) IMPOSITION OF SCHEDULE WHERE FAILURE TO ADOPT

REHABILITATION PLAN.— 

‘‘(i) INITIAL CONTRIBUTION SCHEDULE.—If— 

‘‘(I) a collective bargaining agreement providing 

for contributions under a multiemployer plan that 

was in effect at the time the plan entered critical 

status expires, and 

‘‘(II) after receiving one or more schedules from 

the plan sponsor under paragraph (1)(B), the bargaining parties with respect to such agreement 

fail to adopt a contribution schedule with terms 

consistent with the rehabilitation plan and a 


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schedule from the plan sponsor under paragraph 

(1)(B)(i), 

the plan sponsor shall implement the schedule described in the last sentence of paragraph (1) beginning 

on the date specified in clause (iii). 

‘‘(ii) SUBSEQUENT CONTRIBUTION SCHEDULE.—If— 

‘‘(I) a collective bargaining agreement providing 

for contributions under a multiemployer plan in 

accordance with a schedule provided by the plan 

sponsor pursuant to a rehabilitation plan (or imposed under subparagraph (C)(i)) expires while 

the plan is still in critical status, and 

‘‘(II) after receiving one or more updated schedules from the plan sponsor under subparagraph 

(B)(ii), the bargaining parties with respect to such 

agreement fail to adopt a contribution schedule 

with terms consistent with the updated rehabilitation plan and a schedule from the plan sponsor, 

then the contribution schedule applicable under the 

expired collective bargaining agreement, as updated 

and in effect on the date the collective bargaining 

agreement expires, shall be implemented by the plan 

sponsor beginning on the date specified in clause (iii). 

‘‘(iii) DATE OF IMPLEMENTATION.—The date specified 

in this subparagraph is the date which is 180 days 

after the date on which the collective bargaining 

agreement described in clause (i) or (ii) expires. 

‘‘(iv) FAILURE TO MAKE SCHEDULED CONTRIBUTIONS.—Any failure to make a contribution under a 

schedule of contribution rates provided under this subsection shall be treated as a delinquent contribution 

under section 515 and shall be enforceable as such.’’. 

(b) AMENDMENTS TO THE INTERNAL REVENUE CODE.—Section 432 

of the Internal Revenue Code of 1986 is amended— 

(1) in subsection (c), by amending paragraph (7) to read as 

follows: 

‘‘(7) IMPOSITION OF SCHEDULE WHERE FAILURE TO ADOPT

FUNDING IMPROVEMENT PLAN.— ‘‘(A) INITIAL CONTRIBUTION SCHEDULE.—If— 

‘‘(i) a collective bargaining agreement providing for 

contributions under a multiemployer plan that was in 

effect at the time the plan entered endangered status 

expires, and 

‘‘(ii) after receiving one or more schedules from the 

plan sponsor under paragraph (1)(B), the bargaining 

parties with respect to such agreement fail to adopt a 

contribution schedule with terms consistent with the 

funding improvement plan and a schedule from the 

plan sponsor, 

the plan sponsor shall implement the schedule described 

in paragraph (1)(B)(i)(I) beginning on the date specified in 

subparagraph (C). 

‘‘(B) SUBSEQUENT CONTRIBUTION SCHEDULE.—If— 

‘‘(i) a collective bargaining agreement providing for 

contributions under a multiemployer plan in accordVerDate Sep 11 2014 11:06 Dec 11, 2014 Jkt 049008 PO 00000 Frm 00017 Fmt 6659 Sfmt 6602 E:\HR\OC\HR655.XXX HR655

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ance with a schedule provided by the plan sponsor 

pursuant to a funding improvement plan (or imposed 

under subparagraph (A)) expires while the plan is still 

in endangered status, and 

‘‘(ii) after receiving one or more updated schedules 

from the plan sponsor under paragraph (6)(B), the bargaining parties with respect to such agreement fail to 

adopt a contribution schedule with terms consistent 

with the updated funding improvement plan and a 

schedule from the plan sponsor, 

then the contribution schedule applicable under the expired collective bargaining agreement, as updated and in 

effect on the date the collective bargaining agreement expires, shall be implemented by the plan sponsor beginning 

on the date specified in subparagraph (C). 

‘‘(C) DATE OF IMPLEMENTATION.—The date specified in 

this subparagraph is the date which is 180 days after the 

date on which the collective bargaining agreement described in subparagraph (A) or (B) expires.’’, and 

(2) in subsection (e)(3), by amending subparagraph (C) to 

read as follows: 

‘‘(C) IMPOSITION OF SCHEDULE WHERE FAILURE TO ADOPT

REHABILITATION PLAN.— 

‘‘(i) INITIAL CONTRIBUTION SCHEDULE.—If— 

‘‘(I) a collective bargaining agreement providing 

for contributions under a multiemployer plan that 

was in effect at the time the plan entered critical 

status expires, and 

‘‘(II) after receiving one or more schedules from 

the plan sponsor under paragraph (1)(B), the bargaining parties with respect to such agreement 

fail to adopt a contribution schedule with terms 

consistent with the rehabilitation plan and a 

schedule from the plan sponsor under paragraph 

(1)(B)(i), 

the plan sponsor shall implement the schedule described in the last sentence of paragraph (1) beginning 

on the date specified in clause (iii). 

‘‘(ii) SUBSEQUENT CONTRIBUTION SCHEDULE.—If— 

‘‘(I) a collective bargaining agreement providing 

for contributions under a multiemployer plan in 

accordance with a schedule provided by the plan 

sponsor pursuant to a rehabilitation plan (or imposed under subparagraph (C)(i)) expires while 

the plan is still in critical status, and 

‘‘(II) after receiving one or more updated schedules from the plan sponsor under subparagraph 

(B)(ii), the bargaining parties with respect to such 

agreement fail to adopt a contribution schedule 

with terms consistent with the updated rehabilitation plan and a schedule from the plan sponsor, 

then the contribution schedule applicable under the 

expired collective bargaining agreement, as updated 

and in effect on the date the collective bargaining 


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agreement expires, shall be implemented by the plan 

sponsor beginning on the date specified in clause (iii). 

‘‘(iii) DATE OF IMPLEMENTATION.—The date specified 

in this subparagraph is the date which is 180 days 

after the date on which the collective bargaining 

agreement described in clause (ii) or (iii) expires.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

SEC. 108. REPEAL OF REORGANIZATION RULES FOR MULTIEMPLOYER 

PLANS. 

(a) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.— 

(1) IN GENERAL.—Sections 4241, 4242, 4243, 4244, and 

4244A of the Employee Retirement Income Security Act of 

1974 (29 U.S.C. 1421; 1422; 1423; 1424; 1425) are repealed. 

(2) MODIFICATION OF INSOLVENCY RULES.—Section 4245 of 

such Act (29 U.S.C. 1426) is amended— 

(A) by striking ‘‘reorganization’’ each place it appears 

and inserting ‘‘critical status, as described in subsection 

305(b)(2),’’; 

(B) in subsection (c)(2)— 

(i) by striking ‘‘The suspension’’ and inserting ‘‘(A) 

The suspension’’; 

(ii) by striking ‘‘(within the meaning of section 

4241(b)(6))’’; and 

(iii) by adding at the end the following: 

‘‘(B) For purposes of this paragraph— 

‘‘(i) the term ‘person in pay status’ means— 

‘‘(I) a participant or beneficiary on the last day of 

the base plan year who, at any time during such year, 

was paid an early, late, normal, or disability retirement benefit (or a death benefit related to a retirement benefit), and 

‘‘(II) to the extent provided in regulations prescribed 

by the Secretary of the Treasury, any other person 

who is entitled to such a benefit under the plan. 

‘‘(ii) the base plan year for any plan year is— 

‘‘(I) if there is a relevant collective bargaining agreement, the last plan year ending at least 6 months before the relevant effective date, or 

‘‘(II) if there is no relevant collective bargaining 

agreement, the last plan year ending at least 12 

months before the beginning of the plan year. 

‘‘(iii) a relevant collective bargaining agreement is a collective bargaining agreement— 

‘‘(I) which is in effect for at least 6 months during 

the plan year, and 

‘‘(II) which has not been in effect for more than 36 

months as of the end of the plan year. 

‘‘(iv) the relevant effective date is the earliest of the effective dates for the relevant collective bargaining agreements.’’; 

(C) in subsection (d)— 


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(i) in paragraph (1), by striking ‘‘(determined in accordance with section 4243(3)(B)(ii))’’; and 

(ii) by adding at the end the following: 

‘‘(4) For purposes of this subsection, the value of plan assets shall 

be the value of the available plan assets determined under regulations prescribed by the Secretary of the Treasury.’’; 

(D) in subsection (e)(1)— 

(i) in subparagraph (A), by striking ‘‘the corporation, 

the parties described in section 4242(a)(2), and the 

plan participants and beneficiaries’’ and inserting ‘‘the 

parties described in section 101(f)(1)’’; and 

(ii) in subparagraph (B), by striking ‘‘section 

4242(a)(2) and the plan participants and beneficiaries’’ 

and inserting ‘‘section 101(f)(1)’’; and 

(E) by adding at the end the following: 

‘‘(g) Subsections (a) and (c) shall not apply to a plan that, for the 

plan year, is operating under section 305(e)(9), regarding benefit 

suspensions by certain multiemployer plans in critical and declining status.’’. 

(3) CONFORMING AMENDMENTS.— 

(A) DEFINITION OF REORGANIZATION INDEX.—Section 

4001(a) of such Act (29 U.S.C. 1301(a)) is amended by 

striking paragraph (9). 

(B) MINIMUM FUNDING STANDARDS.—Section 304(a) of 

such Act (29 U.S.C. 1084(a)) is amended to read as follows: 

‘‘(a) IN GENERAL.—For purposes of section 302, the accumulated 

funding deficiency of a multiemployer plan for any plan year is the 

amount, determined as of the end of the plan year, equal to the excess (if any) of the total charges to the funding standard account 

of the plan for all plan years (beginning with the first plan year 

for which this part applies to the plan) over the total credits to 

such account for such years.’’. 

(C) MODIFICATION OF PART HEADING.—Part 3 of subtitle 

D of title IV of such Act (29 U.S.C. 1421 et seq.) is amended by striking the heading and inserting ‘‘insolvent plans’’. 

(D) CONFORMING AMENDMENT TO TABLE OF CONTENTS.— The table of contents in section 1 of such Act (29 U.S.C. 

1001 note) is amended by striking the items relating to 

sections 4241 through 4244A. 

(b) AMENDMENTS TO THE INTERNAL REVENUE CODE.— 

(1) IN GENERAL.—Sections 418, 418A, 418B, 418C, and 418D 

of the Internal Revenue Code of 1986 are repealed. 

(2) MODIFICATION OF INSOLVENCY RULES.—Section 418E of 

such Code is amended— 

(A) by striking ‘‘reorganization’’ each place it appears 

and inserting ‘‘critical status, as described in subsection 

432(b)(2),’’; 

(B) in subsection (c)(2)— 

(i) by striking ‘‘The suspension’’ and inserting ‘‘(A) 

The suspension’’; 

(ii) by striking ‘‘(within the meaning of section 

418(b)(6))’’; and 

(iii) by adding at the end the following: 

‘‘(B) For purposes of this paragraph— 

‘‘(i) the term ‘person in pay status’ means— 


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‘‘(I) a participant or beneficiary on the last day of 

the base plan year who, at any time during such year, 

was paid an early, late, normal, or disability retirement benefit (or a death benefit related to a retirement benefit), and 

‘‘(II) to the extent provided in regulations prescribed 

by the Secretary of the Treasury, any other person 

who is entitled to such a benefit under the plan. 

‘‘(ii) the base plan year for any plan year is— 

‘‘(I) if there is a relevant collective bargaining agreement, the last plan year ending at least 6 months before the relevant effective date, or 

‘‘(II) if there is no relevant collective bargaining 

agreement, the last plan year ending at least 12 

months before the beginning of the plan year. 

‘‘(iii) a relevant collective bargaining agreement is a collective bargaining agreement— 

‘‘(I) which is in effect for at least 6 months during 

the plan year, and 

‘‘(II) which has not been in effect for more than 36 

months as of the end of the plan year. 

‘‘(iv) the relevant effective date is the earliest of the effective dates for the relevant collective bargaining agreements.’’; 

(C) in subsection (d)— 

(i) in paragraph (1), by striking ‘‘(determined in accordance with section 418B(3)(B)(ii))’’; 

(ii) by adding at the end the following: 

‘‘(4) For purposes of this subsection, the value of plan assets 

shall be the value of the available plan assets determined 

under regulations prescribed by the Secretary of the Treasury.’’; 

(D) in subsection (e)(1)— 

(i) in subparagraph (A), by striking ‘‘the corporation, 

the parties described in section 418A(a)(2), and the 

plan participants and beneficiaries’’ and inserting ‘‘the 

parties described in section 101(f)(1) of the Employee 

Retirement Income Security Act of 1974’’; and 

(ii) in subparagraph (B), by striking ‘‘section 

418A(a)(2) and the plan participants and beneficiaries’’ 

and inserting ‘‘section 101(f)(1) of the Employee Retirement Income Security Act of 1974’’; and 

(E) by adding at the end the following: 

‘‘(h) Subsections (a) and (c) shall not apply to a plan that, for the 

plan year, is operating under section 432(e)(9), regarding benefit 

suspensions by certain multiemployer plans in critical and declining status.’’. 

(3) CONFORMING AMENDMENTS.— 

(A) MINIMUM FUNDING STANDARDS.—Section 431(a) of 

the Internal Revenue Code of 1986 is amended to read as 

follows: 

‘‘(a) IN GENERAL.—For purposes of section 412, the accumulated 

funding deficiency of a multiemployer plan for any plan year is the 

amount, determined as of the end of the plan year, equal to the excess (if any) of the total charges to the funding standard account 


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of the plan for all plan years (beginning with the first plan year 

for which this part applies to the plan) over the total credits to 

such account for such years.’’. 

(B) MODIFICATION OF SUBPART HEADING.—Subpart C of 

part I of subchapter D of chapter 1 of such Code is amended by striking the heading and inserting ‘‘INSOLVENT 

PLANS’’. 

(C) CONFORMING AMENDMENT TO TABLE OF CONTENTS.— The table of contents for such subpart C is amended by 

striking the items relating to sections 418 through 418D. 

(D) CONFORMING AMENDMENT TO TABLE OF SUBPARTS.— The table of subparts for part I of subchapter D of chapter 

1 of such Code is amended by striking the heading and inserting ‘‘insolvent plans’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

SEC. 109. DISREGARD OF CERTAIN CONTRIBUTION INCREASES FOR 

WITHDRAWAL LIABILITY PURPOSES. 

(a) AMENDMENT TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.—Section 305 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085) is amended— 

(1) in subsection (e), by striking paragraph (9); 

(2) in subsection (f)— 

(A) by striking paragraph (3) and redesignating paragraph (4) as paragraph (3); and 

(B) in paragraph (3) (as redesignated by subparagraph 

(A)), by striking ‘‘During the rehabilitation plan adoption 

period—’’ and inserting ‘‘During the period beginning on 

the date of the certification under subsection (b)(3)(A) for 

the initial critical year and ending on the date of the adoption of a rehabilitation plan—’’; 

(3) by redesignating subsections (g), (h), and (i) as subsections (h), (i), and (j), respectively; and 

(4) by inserting after subsection (f) the following: 

‘‘(g) ADJUSTMENTS DISREGARDED IN WITHDRAWAL LIABILITY DETERMINATION.— 

‘‘(1) BENEFIT REDUCTION.—Any benefit reductions under subsection (e)(8) or (f) shall be disregarded in determining a plan’s 

unfunded vested benefits for purposes of determining an employer’s withdrawal liability under section 4201. 

‘‘(2) SURCHARGES.—Any surcharges under subsection (e)(7) 

shall be disregarded in determining the allocation of unfunded 

vested benefits to an employer under section 4211 and in determining the highest contribution rate under section 4219(c), 

except for purposes of determining the unfunded vested benefits attributable to an employer under section 4211(c)(4) or a 

comparable method approved under section 4211(c)(5). 

‘‘(3) CONTRIBUTION INCREASES REQUIRED BY FUNDING IMPROVEMENT OR REHABILITATION PLAN.— 

‘‘(A) IN GENERAL.—Any increase in the contribution rate 

(or other increase in contribution requirements unless due 

to increased levels of work, employment, or periods for 

which compensation is provided) that is required or made 

in order to enable the plan to meet the requirement of the 


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funding improvement plan or rehabilitation plan shall be 

disregarded in determining the allocation of unfunded 

vested benefits to an employer under section 4211 and in 

determining the highest contribution rate under section 

4219(c), except for purposes of determining the unfunded 

vested benefits attributable to an employer under section 

4211(c)(4) or a comparable method approved under section 

4211(c)(5). 

‘‘(B) SPECIAL RULES.—For purposes of this paragraph, 

any increase in the contribution rate (or other increase in 

contribution requirements) shall be deemed to be required 

or made in order to enable the plan to meet the requirement of the funding improvement plan or rehabilitation 

plan except for increases in contribution requirements due 

to increased levels of work, employment, or periods for 

which compensation is provided or additional contributions 

are used to provide an increase in benefits, including an 

increase in future benefit accruals, permitted by subsection 

(d)(1)(B) or (f)(1)(B). 

‘‘(4) EMERGENCE FROM ENDANGERED OR CRITICAL STATUS.—In 

the case of increases in the contribution rate (or other increases in contribution requirements unless due to increased 

levels of work, employment, or periods for which compensation 

is provided) disregarded pursuant to paragraph (3), this subsection shall cease to apply as of the expiration date of the collective bargaining agreement in effect when the plan emerges 

from endangered or critical status. Notwithstanding the preceding sentence, once the plan emerges from critical or endangered status, increases in the contribution rate disregarded 

pursuant to paragraph (3) shall continue to be disregarded in 

determining the highest contribution rate under section 4219(c) 

for plan years during which the plan was in endangered or 

critical status. 

‘‘(5) SIMPLIFIED CALCULATIONS.—The Pension Benefit Guaranty Corporation shall prescribe simplified methods for the application of this subsection in determining withdrawal liability 

and payment amounts under section 4219(c).’’. 

(b) AMENDMENTS TO INTERNAL REVENUE CODE.—Section 432 of 

the Internal Revenue Code of 1986 is amended— 

(1) in subsection (e), by striking paragraph (9), 

(2) in subsection (f)— 

(A) by striking paragraph (3) and redesignating paragraph (4) as paragraph (3); and 

(B) in paragraph (4) (as redesignated by subparagraph 

(A)), striking ‘‘During the rehabilitation plan adoption period—’’ and inserting ‘‘During the period beginning on the 

date of the certification under subsection (b)(3)(A) for the 

initial critical year and ending on the date of the adoption 

of a rehabilitation plan—’’; 

(3) by redesignating subsections (g), (h), and (i) as subsections (h), (i), and (j), respectively; and 

(4) by inserting after subsection (f) the following: 

‘‘(g) ADJUSTMENTS DISREGARDED IN WITHDRAWAL LIABILITY DETERMINATION.— 


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‘‘(1) BENEFIT REDUCTION.—Any benefit reductions under subsection (e)(8) or (f) shall be disregarded in determining a plan’s 

unfunded vested benefits for purposes of determining an employer’s withdrawal liability under section 4201 of the Employee Retirement Income Security Act of 1974. 

‘‘(2) SURCHARGES.—Any surcharges under subsection (e)(7) 

shall be disregarded in determining the allocation of unfunded 

vested benefits to an employer under section 4211 of the Employee Retirement Income Security Act of 1974 and in determining the highest contribution rate under section 4219(c) of 

such Act, except for purposes of determining the unfunded 

vested benefits attributable to an employer under section 

4211(c)(4) of such Act or a comparable method approved under 

section 4211(c)(5) of such Act. 

‘‘(3) CONTRIBUTION INCREASES REQUIRED BY FUNDING IMPROVEMENT OR REHABILITATION PLAN.— 

‘‘(A) IN GENERAL.—Any increase in the contribution rate 

(or other increase in contribution requirements unless due 

to increased levels of work, employment, or periods for 

which compensation is provided) that is required or made 

in order to enable the plan to meet the requirement of the 

funding improvement plan or rehabilitation plan shall be 

disregarded in determining the allocation of unfunded 

vested benefits to an employer under section 4211 of such 

Act and in determining the highest contribution rate under 

section 4219(c) of such Act, except for purposes of determining the unfunded vested benefits attributable to an 

employer under section 4211(c)(4) of such Act or a comparable method approved under section 4211(c)(5) of such 

Act. 

‘‘(B) SPECIAL RULES.—For purposes of this paragraph, 

any increase in the contribution rate (or other increase in 

contribution requirements) shall be deemed to be required 

or made in order to enable the plan to meet the requirement of the funding improvement plan or rehabilitation 

plan except for increases in contribution requirements due 

to increased levels of work, employment, or periods for 

which compensation is provided or additional contributions 

are used to provide an increase in benefits, including an 

increase in future benefit accruals, permitted by subsection 

(d)(1)(B) or (f)(1)(B). 

‘‘(4) EMERGENCE FROM ENDANGERED OR CRITICAL STATUS.—In 

the case of increases in the contribution rate (or other increases in contribution requirements unless due to increased 

levels of work, employment, or periods for which compensation 

is provided) disregarded pursuant to paragraph (3), this subsection shall cease to apply as of the expiration date of the collective bargaining agreement in effect when the plan emerges 

from endangered or critical status. Notwithstanding the preceding sentence, once the plan emerges from critical or endangered status, increases in the contribution rate disregarded 

pursuant to paragraph (3) shall continue to be disregarded in 

determining the highest contribution rate under section 4219(c) 

of such Act for plan years during which the plan was in endangered or critical status. 


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‘‘(5) SIMPLIFIED CALCULATIONS.—The Pension Benefit Guaranty Corporation shall prescribe simplified methods for the application of this subsection in determining withdrawal liability 

and payment amounts under section 4219(c) of such Act.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to benefit reductions and increases in the contribution 

rate or other required contribution increases that go into effect during plan years beginning after December 31, 2014 and to surcharges the obligation for which accrue on or after December 31, 

2014. 

SEC. 110. GUARANTEE FOR PRE-RETIREMENT SURVIVOR ANNUITIES 

UNDER MULTIEMPLOYER PENSION PLANS. 

(a) IN GENERAL.—Section 4022A(c) of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1322a(c)) is amended by 

adding at the end the following: 

‘‘(4) For purposes of subsection (a), in the case of a qualified 

preretirement survivor annuity (as defined in section 205(e)(1)) 

payable to the surviving spouse of a participant under a multiemployer plan which becomes insolvent under section 4245(b) 

or 4281(d)(2) or is terminated, such annuity shall not be treated as forfeitable solely because the participant has not died as 

of the date on which the plan became so insolvent or the termination date.’’. 

(b) RETROACTIVE APPLICATION.—The amendment made by this 

section shall apply with respect to multiemployer plan benefit payments becoming payable on or after January 1, 1985, except that 

the amendment shall not apply in any case where the surviving 

spouse has died before the date of the enactment of this Act. 

SEC. 111. REQUIRED DISCLOSURE OF MULTIEMPLOYER PLAN INFORMATION. 

(a) IN GENERAL.—Section 101(k)(1) of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1021(k)(1)) is amended to 

read as follows: 

‘‘(1) IN GENERAL.—Each administrator of a defined benefit 

plan that is a multiemployer plan shall, upon written request, 

furnish to any plan participant or beneficiary, employee representative, or any employer that has an obligation to contribute to the plan a copy of— 

‘‘(A) the current plan document (including any amendments thereto), 

‘‘(B) the latest summary plan description of the plan, 

‘‘(C) the current trust agreement (including any amendments thereto), or any other instrument or agreement 

under which the plan is established or operated, 

‘‘(D) in the case of a request by an employer, any participation agreement with respect to the plan for such employer that relates to the employer’s plan participation 

during the current or any of the 5 immediately preceding 

plan years, 

‘‘(E) the annual report filed under section 104 for any 

plan year, 

‘‘(F) the plan funding notice provided under subsection 

(f) for any plan year, 


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‘‘(G) any periodic actuarial report (including any sensitivity testing) received by the plan for any plan year which 

has been in the plan’s possession for at least 30 days, 

‘‘(H) any quarterly, semi-annual, or annual financial report prepared for the plan by any plan investment manager or advisor or other fiduciary which has been in the 

plan’s possession for at least 30 days, 

‘‘(I) audited financial statements of the plan for any plan 

year, 

‘‘(J) any application filed with the Secretary of the 

Treasury requesting an extension under section 304(d) of 

this Act or section 431(d) of the Internal Revenue Code of 

1986 and the determination of such Secretary pursuant to 

such application, and 

‘‘(K) in the case of a plan which was in critical or endangered status under section 305 for a plan year, the latest 

funding improvement or rehabilitation plan, and the contribution schedules applicable with respect to such funding 

improvement or rehabilitation plan (other than a contribution schedule applicable to a specific employer).’’. 

(b) LIMITATIONS ON DISCLOSURE.—Section 101(k)(3) of such Act 

(29 U.S.C. 1021(k)(3)) is amended by striking the 1st sentence and 

inserting the following: ‘‘In no case shall a participant, beneficiary, 

employee representative, or employer be entitled under this subsection to receive more than one copy of any document described 

in paragraph (1) during any one 12-month period, or, in the case 

of any document described in subparagraph (E), (F), (G), (H) or (I) 

of paragraph (1), a copy of any such document that as of the date 

on which the request is received by the administrator, has been in 

the administrator’s possession for 6 years or more. If the administrator provides a copy of a document described in paragraph (1) to 

any person upon request, the administrator shall be considered as 

having met any obligation the administrator may have under any 

other provision of this title to furnish a copy of the same document 

to such person upon request.’’. 

(c) RETENTION OF RECORDS.—Section 107 of such Act (29 U.S.C. 

1027) is amended— 

(1) by inserting ‘‘(including the documents described in subparagraphs (E) through (I) of section 101(k))’’ after ‘‘file any report’’; and 

(2) by inserting ‘‘a copy of such report and’’ after ‘‘shall maintain’’. 

(d) CIVIL ENFORCEMENT.—Section 502(a) of such Act (29 U.S.C. 

1132(a)) is amended— 

(1) in paragraph (9), by striking ‘‘or’’ at the end; 

(2) in paragraph (10), by striking the period at the end and 

inserting ‘‘; or’’; and 

(3) by adding at the end the following: 

‘‘(11) in the case of a multiemployer plan, by an employee 

representative, or any employer that has an obligation to contribute to the plan, (A) to enjoin any act or practice which violates subsection (k) of section 101 (or, in the case of an employer, subsection (l) of such section), or (B) to obtain appropriate equitable relief (i) to redress such violation or (ii) to enforce such subsection.’’. 


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(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

Subtitle B—Multiemployer Plan Mergers 

and Partitions 

SEC. 121. MERGERS. 

(a) PBGC ASSISTANCE FOR MULTIEMPLOYER PLAN MERGERS.— 

Section 4231 of the Employee Retirement Income Security Act of 

1974 (29 U.S.C. 1411) is amended by adding at the end the following: 

‘‘(e) FACILITATED MERGERS.— 

‘‘(1) IN GENERAL.—When requested to do so by the plan sponsors, the corporation may take such actions as it deems appropriate to promote and facilitate the merger of two or more multiemployer plans if it determines, after consultation with the 

Participant and Plan Sponsor Advocate selected under section 

4004, that the transaction is in the interests of the participants 

and beneficiaries of at least one of the plans and is not reasonably expected to be adverse to the overall interests of the participants and beneficiaries of any of the plans. Such facilitation 

may include training, technical assistance, mediation, communication with stakeholders, and support with related requests 

to other government agencies. 

‘‘(2) FINANCIAL ASSISTANCE.—In order to facilitate a merger 

which it determines is necessary to enable one or more of the 

plans involved to avoid or postpone insolvency, the corporation 

may provide financial assistance (within the meaning of section 4261) to the merged plan if— 

‘‘(A) one or more of the multiemployer plans participating in the merger is in critical and declining status (as 

defined in section 305(b)(4)); 

‘‘(B) the corporation reasonably expects that— 

‘‘(i) such financial assistance will reduce the corporation’s expected long-term loss with respect to the plans 

involved; and 

‘‘(ii) such financial assistance is necessary for the 

merged plan to become or remain solvent; 

‘‘(C) the corporation certifies that its ability to meet existing financial assistance obligations to other plans will 

not be impaired by such financial assistance; and 

‘‘(D) such financial assistance is paid exclusively from 

the fund for basic benefits guaranteed for multiemployer 

plans. 

Not later than 14 days after the provision of such financial assistance, the corporation shall provide notice of such financial 

assistance to the Committee on Education and the Workforce 

of the House of Representatives, the Committee on Ways and 

Means of the House of Representatives, the Committee on Finance of the Senate, and the Committee on Health, Education, 

Labor, and Pensions of the Senate.’’. 


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(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 

SEC. 122. PARTITIONS OF ELIGIBLE MULTIEMPLOYER PLANS. 

(a) IN GENERAL.— 

(1) IN GENERAL.—Section 4233 of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1413) is amended to 

read as follows: 

‘‘SEC. 4233. PARTITIONS OF ELIGIBLE MULTIEMPLOYER PLANS. 

‘‘(a)(1) Upon the application by the plan sponsor of an eligible 

multiemployer plan for a partition of the plan, the corporation may 

order a partition of the plan in accordance with this section. The 

corporation shall make a determination regarding the application 

not later than 270 days after the date such application was filed 

(or, if later, the date such application was completed) in accordance 

with regulations promulgated by the corporation. 

‘‘(2) Not later than 30 days after submitting an application for 

partition of a plan under paragraph (1), the plan sponsor of the 

plan shall notify the participants and beneficiaries of such application, in the form and manner prescribed by regulations issued by 

the corporation. 

‘‘(b) For purposes of this section, a multiemployer plan is an eligible multiemployer plan if— 

‘‘(1) the plan is in critical and declining status (as defined in 

section 305(b)(4)); 

‘‘(2) the corporation determines, after consultation with the 

Participant and Plan Sponsor Advocate selected under section 

4004, that the plan sponsor has taken (or is taking concurrently with an application for partition) all reasonable measures to avoid insolvency, including the maximum benefit suspensions under section 305(e)(9), if applicable; 

‘‘(3) the corporation reasonably expects that— 

‘‘(A) a partition of the plan will reduce the corporation’s 

expected long-term loss with respect to the plan; and 

‘‘(B) a partition of the plan is necessary for the plan to 

remain solvent; 

‘‘(4) the corporation certifies to Congress that its ability to 

meet existing financial assistance obligations to other plans 

(including any liabilities associated with multiemployer plans 

that are insolvent or that are projected to become insolvent 

within 10 years) will not be impaired by such partition; and 

‘‘(5) the cost to the corporation arising from such partition is 

paid exclusively from the fund for basic benefits guaranteed for 

multiemployer plans. 

‘‘(c) The corporation’s partition order shall provide for a transfer 

to the plan referenced in subsection (d)(1) of the minimum amount 

of the plan’s liabilities necessary for the plan to remain solvent. 

‘‘(d)(1) The plan created by the partition order is a successor plan 

to which section 4022A applies. 

‘‘(2) The plan sponsor of an eligible multiemployer plan prior to 

the partition and the administrator of such plan shall be the plan 

sponsor and the administrator, respectively, of the plan created by 

the partition order. 


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‘‘(3) In the event an employer withdraws from the plan that was 

partitioned within ten years following the date of the partition 

order, withdrawal liability shall be computed under section 4201 

with respect to both the plan that was partitioned and the plan created by the partition order. If the withdrawal occurs more than ten 

years after the date of the partition order, withdrawal liability 

shall be computed under section 4201 only with respect to the plan 

that was partitioned (and not with respect to the plan created by 

the partition order). 

‘‘(e)(1) For each participant or beneficiary of the plan whose benefit was transferred to the plan created by the partition order pursuant to a partition, the plan that was partitioned shall pay a 

monthly benefit to such participant or beneficiary for each month 

in which such benefit is in pay status following the effective date 

of such partition in an amount equal to the excess of— 

‘‘(A) the monthly benefit that would be paid to such participant or beneficiary for such month under the terms of the plan 

(taking into account benefit suspensions under section 

305(e)(9) and any plan amendments following the effective date 

of such partition) if the partition had not occurred, over 

‘‘(B) the monthly benefit for such participant or beneficiary 

which is guaranteed under section 4022A. 

‘‘(2) In any case in which a plan provides a benefit improvement 

(as defined in section 305(e)(9)(E)(vi)) that takes effect after the effective date of the partition, the plan shall pay to the corporation 

for each year during the 10-year period following the partition effective date, an annual amount equal to the lesser of— 

‘‘(A) the total value of the increase in benefit payments for 

such year that is attributable to the benefit improvement, or 

‘‘(B) the total benefit payments from the plan created by the 

partition for such year. 

Such payment shall be made at the time of, and in addition to, any 

other premium imposed by the corporation under this title. 

‘‘(3) The plan that was partitioned shall pay the premiums imposed by the corporation under this title with respect to participants whose benefits were transferred to the plan created by the 

partition order for each year during the 10-year period following 

the partition effective date. 

‘‘(f) Not later than 14 days after the partition order, the corporation shall provide notice of such order to the Committee on Education and the Workforce of the House of Representatives, the 

Committee on Ways and Means of the House of Representatives, 

the Committee on Finance of the Senate, the Committee on Health, 

Education, Labor, and Pensions of the Senate, and any affected 

participants or beneficiaries.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to plan years beginning after December 31, 

2014. 


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Subtitle C—Strengthening the Pension 

Benefit Guaranty Corporation 

SEC. 131. PREMIUM INCREASES FOR MULTIEMPLOYER PLANS. 

(a) INCREASE IN PREMIUM RATE FOR MULTIEMPLOYER PLANS.— 

Section 4006(a)(3) of the Employee Retirement Income Security Act 

of 1974 (29 U.S.C. 1306(a)(3)) is amended— 

(1) in subparagraph (A)— 

(A) in clause (iv), by striking ‘‘or’’ at the end; 

(B) in clause (v)— 

(i) by inserting ‘‘and before January 1, 2015,’’ after 

‘‘December 31, 2012,’’; and 

(ii) by striking the period at the end and inserting 

‘‘, or’’; and 

(C) by adding at the end the following: 

‘‘(vi) in the case of a multiemployer plan, for plan years beginning after December 31, 2014, $26 for each individual who 

is a participant in such plan during the applicable plan year.’’; 

and 

(2) by adding at the end the following: 

‘‘(M) For each plan year beginning in a calendar year after 2015, 

there shall be substituted for the dollar amount specified in clause 

(vi) of subparagraph (A) an amount equal to the greater of— 

‘‘(i) the product derived by multiplying such dollar amount 

by the ratio of— 

‘‘(I) the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the 

2 calendar years preceding the calendar year in which 

such plan year begins, to 

‘‘(II) the national average wage index (as so defined) for 

2013; and 

‘‘(ii) such dollar amount for plan years beginning in the preceding calendar year. 

If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple 

of $1.’’. 

(b) TREATMENT OF CERTAIN FUNDS.—Section 4005(b)(3) of such 

Act (29 U.S.C. 1305(b)(3)) is amended— 

(1) by striking ‘‘Whenever’’ and inserting ‘‘(A) Whenever’’; 

and 

(2) by adding at the end the following: 

‘‘(B) Notwithstanding subparagraph (A)— 

‘‘(i) the amounts of premiums received under section 4006 

with respect to the fund to be used for basic benefits under section 4022A in a fiscal year in the period beginning with fiscal 

year 2016 and ending with fiscal year 2020 shall be placed in 

a noninterest-bearing account within such fund in the following amounts: 

‘‘(I) for fiscal year 2016, $108,000,000; 

‘‘(II) for fiscal year 2017, $111,000,000; 

‘‘(III) for fiscal year 2018, $113,000,000; 

‘‘(IV) for fiscal year 2019, $149,000,000; and 

‘‘(V) for fiscal year 2020, $296,000,000; 


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‘‘(ii) premiums received in fiscal years specified in subclauses 

(I) through (V) of clause (i) shall be allocated in order first to 

the noninterest-bearing account in the amount specified and 

second to any other accounts within such fund; and 

‘‘(iii) financial assistance, as provided under section 4261, 

shall be withdrawn proportionately from the noninterest-bearing and other accounts within the fund.’’. 

(c) REPORT.—In addition to any other report required by section 

4022A(f), not later than June 1, 2016, the Pension Benefit Guaranty Corporation shall submit to Congress a report that includes— 

(1) an analysis of whether the premium levels enacted under 

the amendment made by subsection (a) are sufficient for the 

Pension Benefit Guaranty Corporation to meet its projected 

mean stochastic basic benefit guarantee obligations for the tenand twenty-year periods beginning with 2015, including an explanation of the assumptions underlying this analysis; and 

(2) if the analysis under paragraph (1) concludes that the 

premium levels are insufficient to meet such obligations (or are 

in excess of the levels sufficient to meet such obligations), a 

proposed schedule of revised premiums sufficient to meet (but 

not exceed) such obligations. 

(d) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall apply with respect to plan years beginning after December 31, 

2014. 

TITLE II—REMEDIATION MEASURES 

FOR DEEPLY TROUBLED PLANS 

SEC. 201. CONDITIONS, LIMITATIONS, DISTRIBUTION AND NOTICE REQUIREMENTS, AND APPROVAL PROCESS FOR BENEFIT 

SUSPENSIONS UNDER MULTIEMPLOYER PLANS IN CRITICAL AND DECLINING STATUS. 

(a) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.— 

(1) GENERAL RULE FOR PLAN IN CRITICAL AND DECLINING STA- TUS.—Section 305(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085(a)) is amended— 

(A) in paragraph (1)(B), by striking ‘‘and’’ at the end; 

(B) in paragraph (2)(B), by striking the period at the end 

and inserting ‘‘, and’’; and 

(C) by adding at the end the following: 

‘‘(3) if the plan is in critical and declining status— 

‘‘(A) the requirements of paragraph (2) shall apply to the 

plan; and 

‘‘(B) the plan sponsor may, by plan amendment, suspend 

benefits in accordance with the requirements of subsection 

(e)(9).’’. 

(2) CRITICAL AND DECLINING STATUS DEFINED.—Section 

305(b) of the Employee Retirement Income Security Act of 

1974 (29 U.S.C. 1085(b)), as amended by sections 102 and 104, 

is further amended by adding at the end the following: 

‘‘(6) CRITICAL AND DECLINING STATUS.—For purposes of this 

section, a plan in critical status shall be treated as in critical 

and declining status if the plan is described in one or more of 

subparagraphs (A), (B), (C), and (D) of paragraph (2) and the 


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plan is projected to become insolvent within the meaning of 

section 4245 during the current plan year or any of the 14 succeeding plan years (19 succeeding plan years if the plan has 

a ratio of inactive participants to active participants that exceeds 2 to 1 or if the funded percentage of the plan is less than 

80 percent).’’. 

(3) ANNUAL CERTIFICATION.—Section 305(b)(3)(A)(i) of the 

Employee Retirement Income Security Act of 1974 (29 U.S.C. 

1085(b)(3)(A)(i)) is amended— 

(A) by striking ‘‘and whether’’ and inserting ‘‘, whether’’, 

and 

(B) by inserting ‘‘, and whether or not the plan is or will 

be in critical and declining status for such plan year’’ before ‘‘, and’’ at the end. 

(4) ANNUAL FUNDING NOTICES.—Section 101(f)(2)(B) of such 

Act (29 U.S.C. 1021(f)(2)(B)) is amended— 

(A) by redesignating clauses (vi) through (x) as clauses 

(vii) through (xi), respectively; and 

(B) by inserting after clause (v) the following: 

‘‘(vi) in the case of a multiemployer plan, whether 

the plan was in critical and declining status under section 305 for such plan year and, if so— 

‘‘(I) the projected date of insolvency; 

‘‘(II) a clear statement that such insolvency may 

result in benefit reductions; and 

‘‘(III) a statement describing whether the plan 

sponsor has taken legally permitted actions to 

prevent insolvency.’’. 

(5) PROJECTIONS OF ASSETS AND LIABILITIES.—Section 

305(b)(3)(B) of the Employee Retirement Income Security Act 

of 1974 (29 U.S.C. 1085(b)(3)(B)) is amended by adding at the 

end the following: 

‘‘(iv) PROJECTIONS OF CRITICAL AND DECLINING STATUS.—In determining whether a plan is in critical and 

declining status as described in subsection (e)(9), 

clauses (i), (ii), and (iii) shall apply, except that— 

‘‘(I) if reasonable, the plan actuary shall assume 

that each contributing employer in compliance 

continues to comply through the end of the rehabilitation period or such later time as provided in 

subsection (e)(3)(A)(ii) with the terms of the rehabilitation plan that correspond to the schedule 

adopted or imposed under subsection (e), and 

‘‘(II) the plan actuary shall take into account 

any suspensions of benefits described in subsection (e)(9) adopted in a prior plan year that are 

still in effect.’’. 

(6) BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN

CRITICAL AND DECLINING STATUS.—Section 305(e) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 

1085(e)) (as amended by section 109) is amended by inserting 

after paragraph (8) the following: 

‘‘(9) BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN

CRITICAL AND DECLINING STATUS.— 


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‘‘(A) IN GENERAL.—Notwithstanding section 204(g) and 

subject to subparagraphs (B) through (I), the plan sponsor 

of a plan in critical and declining status may, by plan 

amendment, suspend benefits which the sponsor deems appropriate. 

‘‘(B) SUSPENSION OF BENEFITS.— ‘‘(i) SUSPENSION OF BENEFITS DEFINED.—For purposes of this subsection, the term ‘suspension of benefits’ means the temporary or permanent reduction of 

any current or future payment obligation of the plan 

to any participant or beneficiary under the plan, 

whether or not in pay status at the time of the suspension of benefits. 

‘‘(ii) LENGTH OF SUSPENSIONS.—Any suspension of 

benefits made under subparagraph (A) shall remain in 

effect until the earlier of when the plan sponsor provides benefit improvements in accordance with subparagraph (E) or the suspension of benefits expires by 

its own terms. 

‘‘(iii) NO LIABILITY.—The plan shall not be liable for 

any benefit payments not made as a result of a suspension of benefits under this paragraph. 

‘‘(iv) APPLICABILITY.—For purposes of this paragraph, all references to suspensions of benefits, increases in benefits, or resumptions of suspended benefits with respect to participants shall also apply with 

respect to benefits of beneficiaries or alternative payees of participants. 

‘‘(v) RETIREE REPRESENTATIVE.— 

‘‘(I) IN GENERAL.—In the case of a plan with 

10,000 or more participants, not later than 60 

days prior to the plan sponsor submitting an application to suspend benefits, the plan sponsor 

shall select a participant of the plan in pay status 

to act as a retiree representative. The retiree representative shall advocate for the interests of the 

retired and deferred vested participants and beneficiaries of the plan throughout the suspension approval process. 

‘‘(II) REASONABLE EXPENSES FROM PLAN.—The 

plan shall provide for reasonable expenses by the 

retiree representative, including reasonable legal 

and actuarial support, commensurate with the 

plan’s size and funded status. 

‘‘(III) SPECIAL RULE RELATING TO FIDUCIARY STATUS.—Duties performed pursuant to subclause (I) 

shall not be subject to section 404(a). The preceding sentence shall not apply to those duties associated with an application to suspend benefits 

pursuant to subparagraph (G) that are performed 

by the retiree representative who is also a plan 

trustee. 

‘‘(C) CONDITIONS FOR SUSPENSIONS.—The plan sponsor of 

a plan in critical and declining status for a plan year may 

suspend benefits only if the following conditions are met: 


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‘‘(i) Taking into account the proposed suspensions of 

benefits (and, if applicable, a proposed partition of the 

plan under section 4233), the plan actuary certifies 

that the plan is projected to avoid insolvency within 

the meaning of section 4245, assuming the suspensions of benefits continue until the suspensions of benefits expire by their own terms or if no such expiration 

date is set, indefinitely. 

‘‘(ii) The plan sponsor determines, in a written 

record to be maintained throughout the period of the 

benefit suspension, that the plan is still projected to 

become insolvent unless benefits are suspended under 

this paragraph, although all reasonable measures to 

avoid insolvency have been taken (and continue to be 

taken during the period of the benefit suspension). In 

its determination, the plan sponsor may take into account factors including the following: 

‘‘(I) Current and past contribution levels. 

‘‘(II) Levels of benefit accruals (including any 

prior reductions in the rate of benefit accruals). 

‘‘(III) Prior reductions (if any) of adjustable benefits. 

‘‘(IV) Prior suspensions (if any) of benefits under 

this subsection. 

‘‘(V) The impact on plan solvency of the subsidies and ancillary benefits available to active 

participants. 

‘‘(VI) Compensation levels of active participants 

relative to employees in the participants’ industry 

generally. 

‘‘(VII) Competitive and other economic factors 

facing contributing employers. 

‘‘(VIII) The impact of benefit and contribution 

levels on retaining active participants and bargaining groups under the plan. 

‘‘(IX) The impact of past and anticipated contribution increases under the plan on employer attrition and retention levels. 

‘‘(X) Measures undertaken by the plan sponsor 

to retain or attract contributing employers. 

‘‘(D) LIMITATIONS ON SUSPENSIONS.—Any suspensions of 

benefits made by a plan sponsor pursuant to this paragraph shall be subject to the following limitations: 

‘‘(i) The monthly benefit of any participant or beneficiary may not be reduced below 110 percent of the 

monthly benefit which is guaranteed by the Pension 

Benefit Guaranty Corporation under section 4022A on 

the date of the suspension. 

‘‘(ii)(I) In the case of a participant or beneficiary who 

has attained 75 years of age as of the effective date of 

the suspension, not more than the applicable percentage of the maximum suspendable benefits of such participant or beneficiary may be suspended under this 

paragraph. 


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‘‘(II) For purposes of subclause (I), the maximum 

suspendable benefits of a participant or beneficiary is 

the portion of the benefits of such participant or beneficiary that would be suspended pursuant to this paragraph without regard to this clause; 

‘‘(III) For purposes of subclause (I), the applicable 

percentage is a percentage equal to the quotient obtained by dividing— 

‘‘(aa) the number of months during the period 

beginning with the month after the month in 

which occurs the effective date of the suspension 

and ending with the month during which the participant or beneficiary attains the age of 80, by 

‘‘(bb) 60 months. 

‘‘(iii) No benefits based on disability (as defined 

under the plan) may be suspended under this paragraph. 

‘‘(iv) Any suspensions of benefits, in the aggregate 

(and, if applicable, considered in combination with a 

partition of the plan under section 4233), shall be reasonably estimated to achieve, but not materially exceed, the level that is necessary to avoid insolvency. 

‘‘(v) In any case in which a suspension of benefits 

with respect to a plan is made in combination with a 

partition of the plan under section 4233, the suspension of benefits may not take effect prior to the effective date of such partition. 

‘‘(vi) Any suspensions of benefits shall be equitably 

distributed across the participant and beneficiary population, taking into account factors, with respect to 

participants and beneficiaries and their benefits, that 

may include one or more of the following: 

‘‘(I) Age and life expectancy. 

‘‘(II) Length of time in pay status. 

‘‘(III) Amount of benefit. 

‘‘(IV) Type of benefit: survivor, normal retirement, early retirement. 

‘‘(V) Extent to which participant or beneficiary 

is receiving a subsidized benefit. 

‘‘(VI) Extent to which participant or beneficiary 

has received post-retirement benefit increases. 

‘‘(VII) History of benefit increases and reductions. 

‘‘(VIII) Years to retirement for active employees. 

‘‘(IX) Any discrepancies between active and retiree benefits. 

‘‘(X) Extent to which active participants are reasonably likely to withdraw support for the plan, 

accelerating employer withdrawals from the plan 

and increasing the risk of additional benefit reductions for participants in and out of pay status. 

‘‘(XI) Extent to which benefits are attributed to 

service with an employer that failed to pay its full 

withdrawal liability. 


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‘‘(vii) In the case of a plan that includes the benefits 

described in clause (III), benefits suspended under this 

paragraph shall— 

‘‘(I) first, be applied to the maximum extent permissible to benefits attributable to a participant’s 

service for an employer which withdrew from the 

plan and failed to pay (or is delinquent with respect to paying) the full amount of its withdrawal 

liability under section 4201(b)(1) or an agreement 

with the plan, 

‘‘(II) second, except as provided by subclause 

(III), be applied to all other benefits that may be 

suspended under this paragraph, and 

‘‘(III) third, be applied to benefits under a plan 

that are directly attributable to a participant’s 

service with any employer which has, prior to the 

date of enactment of the Multiemployer Pension 

Reform Act of 2014— 

‘‘(aa) withdrawn from the plan in a complete withdrawal under section 4203 and has 

paid the full amount of the employer’s withdrawal liability under section 4201(b)(1) or an 

agreement with the plan, and 

‘‘(bb) pursuant to a collective bargaining 

agreement, assumed liability for providing 

benefits to participants and beneficiaries of 

the plan under a separate, single-employer 

plan sponsored by the employer, in an amount 

equal to any amount of benefits for such participants and beneficiaries reduced as a result 

of the financial status of the plan. 

‘‘(E) BENEFIT IMPROVEMENTS.— 

‘‘(i) IN GENERAL.—The plan sponsor may, in its sole 

discretion, provide benefit improvements while any 

suspension of benefits under the plan remains in effect, except that the plan sponsor may not increase the 

liabilities of the plan by reason of any benefit improvement for any participant or beneficiary not in pay status by the first day of the plan year for which the benefit improvement takes effect, unless— 

‘‘(I) such action is accompanied by equitable 

benefit improvements in accordance with clause 

(ii) for all participants and beneficiaries whose 

benefit commencement dates were before the first 

day of the plan year for which the benefit improvement for such participant or beneficiary not 

in pay status took effect; and 

‘‘(II) the plan actuary certifies that after taking 

into account such benefits improvements the plan 

is projected to avoid insolvency indefinitely under 

section 4245. 

‘‘(ii) EQUITABLE DISTRIBUTION OF BENEFIT IMPROVE- MENTS.— 

‘‘(I) LIMITATION.—The projected value of the 

total liabilities for benefit improvements for parVerDate Sep 11 2014 11:06 Dec 11, 2014 Jkt 049008 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\HR655.XXX HR655

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ticipants and beneficiaries not in pay status by 

the date of the first day of the plan year in which 

the benefit improvements are proposed to take effect, as determined as of such date, may not exceed the projected value of the liabilities arising 

from benefit improvements for participants and 

beneficiaries with benefit commencement dates 

prior to the first day of such plan year, as so determined. 

‘‘(II) EQUITABLE DISTRIBUTION OF BENEFITS.— The plan sponsor shall equitably distribute any 

increase in total liabilities for benefit improvements in clause (i) to some or all of the participants and beneficiaries whose benefit commencement date is before the date of the first day of the 

plan year in which the benefit improvements are 

proposed to take effect, taking into account the 

relevant factors described in subparagraph (D)(vi) 

and the extent to which the benefits of the participants and beneficiaries were suspended. 

‘‘(iii) SPECIAL RULE FOR RESUMPTIONS OF BENEFITS

ONLY FOR PARTICIPANTS IN PAY STATUS.—The plan 

sponsor may increase liabilities of the plan through a 

resumption of benefits for participants and beneficiaries in pay status only if the plan sponsor equitably distributes the value of resumed benefits to some 

or all of the participants and beneficiaries in pay status, taking into account the relevant factors described 

in subparagraph (D)(vi). 

‘‘(iv) SPECIAL RULE FOR CERTAIN BENEFIT IN- CREASES.—This subparagraph shall not apply to a resumption of suspended benefits or plan amendment 

which increases liabilities with respect to participants 

and beneficiaries not in pay status by the first day of 

the plan year in which the benefit improvements took 

effect which— 

‘‘(I) the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, determines to be 

reasonable and which provides for only de minimis increases in the liabilities of the plan, or 

‘‘(II) is required as a condition of qualification 

under part I of subchapter D of chapter 1 of subtitle A of the Internal Revenue Code of 1986 or to 

comply with other applicable law, as determined 

by the Secretary of the Treasury. 

‘‘(v) ADDITIONAL LIMITATIONS.—Except for resumptions of suspended benefits described in clause (iii), 

the limitations on benefit improvements while a suspension of benefits is in effect under this paragraph 

shall be in addition to any other applicable limitations 

on increases in benefits imposed on a plan. 

‘‘(vi) DEFINITION OF BENEFIT IMPROVEMENT.—For 

purposes of this subparagraph, the term ‘benefit improvement’ means, with respect to a plan, a resumpVerDate Sep 11 2014 11:06 Dec 11, 2014 Jkt 049008 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\HR655.XXX HR655

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tion of suspended benefits, an increase in benefits, an 

increase in the rate at which benefits accrue, or an increase in the rate at which benefits become nonforfeitable under the plan. 

‘‘(F) NOTICE REQUIREMENTS.— 

‘‘(i) IN GENERAL.—No suspension of benefits may be 

made pursuant to this paragraph unless notice of such 

proposed suspension has been given by the plan sponsor concurrently with an application for approval of 

such suspension submitted under subparagraph (G) to 

the Secretary of the Treasury to— 

‘‘(I) such plan participants and beneficiaries who 

may be contacted by reasonable efforts, 

‘‘(II) each employer who has an obligation to 

contribute (within the meaning of section 4212(a)) 

under the plan, and 

‘‘(III) each employee organization which, for purposes of collective bargaining, represents plan participants employed by such an employer. 

‘‘(ii) CONTENT OF NOTICE.—The notice under clause 

(i) shall contain— 

‘‘(I) sufficient information to enable participants 

and beneficiaries to understand the effect of any 

suspensions of benefits, including an individualized estimate (on an annual or monthly basis) of 

such effect on each participant or beneficiary, 

‘‘(II) a description of the factors considered by 

the plan sponsor in designing the benefit suspensions, 

‘‘(III) a statement that the application for approval of any suspension of benefits shall be available on the website of the Department of the 

Treasury and that comments on such application 

will be accepted, 

‘‘(IV) information as to the rights and remedies 

of plan participants and beneficiaries, 

‘‘(V) if applicable, a statement describing the appointment of a retiree representative, the date of 

appointment of such representative, identifying 

information about the retiree representative (including whether the representative is a plan trustee), and how to contact such representative, and 

‘‘(VI) information on how to contact the Department of the Treasury for further information and 

assistance where appropriate. 

‘‘(iii) FORM AND MANNER.—Any notice under clause 

(i)— 

‘‘(I) shall be provided in a form and manner prescribed in guidance by the Secretary of the Treasury, in consultation with the Pension Benefit 

Guaranty Corporation and the Secretary of Labor, 

notwithstanding any other provision of law, 

‘‘(II) shall be written in a manner so as to be 

understood by the average plan participant, and 


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‘‘(III) may be provided in written, electronic, or 

other appropriate form to the extent such form is 

reasonably accessible to persons to whom the notice is required to be provided. 

‘‘(iv) OTHER NOTICE REQUIREMENT.—Any notice provided under clause (i) shall fulfill the requirement for 

notice of a significant reduction in benefits described 

in section 204(h). 

‘‘(v) MODEL NOTICE.—The Secretary of the Treasury, 

in consultation with the Pension Benefit Guaranty 

Corporation and the Secretary of Labor, shall in the 

guidance prescribed under clause (iii)(I) establish a 

model notice that a plan sponsor may use to meet the 

requirements of this subparagraph. 

‘‘(G) APPROVAL PROCESS BY THE SECRETARY OF THE

TREASURY IN CONSULTATION WITH THE PENSION BENEFIT

GUARANTY CORPORATION AND THE SECRETARY OF LABOR.— 

‘‘(i) IN GENERAL.—The plan sponsor of a plan in critical and declining status for a plan year that seeks to 

suspend benefits must submit an application to the 

Secretary of the Treasury for approval of the suspensions of benefits. If the plan sponsor submits an application for approval of the suspensions, the Secretary of 

the Treasury, in consultation with the Pension Benefit 

Guaranty Corporation and the Secretary of Labor, 

shall approve the application upon finding that the 

plan is eligible for the suspensions and has satisfied 

the criteria of subparagraphs (C), (D), (E), and (F). 

‘‘(ii) SOLICITATION OF COMMENTS.—Not later than 30 

days after receipt of the application under clause (i), 

the Secretary of the Treasury, in consultation with the 

Pension Benefit Guaranty Corporation and the Secretary of Labor, shall publish a notice in the Federal 

Register soliciting comments from contributing employers, employee organizations, and participants and 

beneficiaries of the plan for which an application was 

made and other interested parties. The application for 

approval of the suspension of benefits shall be published on the website of the Secretary of the Treasury. 

‘‘(iii) REQUIRED ACTION; DEEMED APPROVAL.—The 

Secretary of the Treasury, in consultation with the 

Pension Benefit Guaranty Corporation and the Secretary of Labor, shall approve or deny any application 

for suspensions of benefits under this paragraph within 225 days after the submission of such application. 

An application for suspension of benefits shall be 

deemed approved unless, within such 225 days, the 

Secretary of the Treasury notifies the plan sponsor 

that it has failed to satisfy one or more of the criteria 

described in this paragraph. If the Secretary of the 

Treasury, in consultation with the Pension Benefit 

Guaranty Corporation and the Secretary of Labor, rejects a plan sponsor’s application, the Secretary of the 

Treasury shall provide notice to the plan sponsor detailing the specific reasons for the rejection, including 


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reference to the specific requirement not satisfied. Approval or denial by the Secretary of the Treasury of an 

application shall be treated as a final agency action for 

purposes of section 704 of title 5, United States Code. 

‘‘(iv) AGENCY REVIEW.—In evaluating whether the 

plan sponsor has met the criteria specified in clause 

(ii) of subparagraph (C), the Secretary of the Treasury, 

in consultation with the Pension Benefit Guaranty 

Corporation and the Secretary of Labor, shall review 

the plan sponsor’s consideration of factors under such 

clause. 

‘‘(v) STANDARD FOR ACCEPTING PLAN SPONSOR DETERMINATIONS.—In evaluating the plan sponsor’s application, the Secretary of the Treasury shall accept the 

plan sponsor’s determinations unless it concludes, in 

consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, that the plan 

sponsor’s determinations were clearly erroneous. 

‘‘(H) PARTICIPANT RATIFICATION PROCESS.— 

‘‘(i) IN GENERAL.—No suspension of benefits may 

take effect pursuant to this paragraph prior to a vote 

of the participants of the plan with respect to the suspension. 

‘‘(ii) ADMINISTRATION OF VOTE.—Not later than 30 

days after approval of the suspension by the Secretary 

of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, 

under subparagraph (G), the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall administer a vote of participants and beneficiaries of the 

plan. Except as provided in clause (v), the suspension 

shall go into effect following the vote unless a majority 

of all participants and beneficiaries of the plan vote to 

reject the suspension. The plan sponsor may submit a 

new suspension application to the Secretary of the 

Treasury for approval in any case in which a suspension is prohibited from taking effect pursuant to a vote 

under this subparagraph. 

‘‘(iii) BALLOTS.—The plan sponsor shall provide a 

ballot for the vote (subject to approval by the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary 

of Labor) that includes the following: 

‘‘(I) A statement from the plan sponsor in support of the suspension. 

‘‘(II) A statement in opposition to the suspension 

compiled from comments received pursuant to 

subparagraph (G)(ii). 

‘‘(III) A statement that the suspension has been 

approved by the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor. 


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‘‘(IV) A statement that the plan sponsor has determined that the plan will become insolvent unless the suspension takes effect. 

‘‘(V) A statement that insolvency of the plan 

could result in benefits lower than benefits paid 

under the suspension. 

‘‘(VI) A statement that insolvency of the Pension 

Benefit Guaranty Corporation would result in 

benefits lower than benefits paid in the case of 

plan insolvency. 

‘‘(iv) COMMUNICATION BY PLAN SPONSOR.—It is the 

sense of Congress that, depending on the size and resources of the plan and geographic distribution of the 

plan’s participants, the plan sponsor should take such 

steps as may be necessary to inform participants 

about proposed benefit suspensions through in-person 

meetings, telephone or internet-based communications, 

mailed information, or by other means. 

‘‘(v) SYSTEMICALLY IMPORTANT PLANS.— 

‘‘(I) IN GENERAL.—Not later than 14 days after 

a vote under this subparagraph rejecting a suspension, the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall determine whether the plan is a systemically important 

plan. If the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, determines that 

the plan is a systemically important plan, not 

later than the end of the 90-day period beginning 

on the date the results of the vote are certified, 

the Secretary of the Treasury shall, notwithstanding such adverse vote— 

‘‘(aa) permit the implementation of the suspension proposed by the plan sponsor; or 

‘‘(bb) permit the implementation of a modification by the Secretary of the Treasury, in 

consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, 

of such suspension (so long as the plan is projected to avoid insolvency within the meaning 

of section 4245 under such modification). 

‘‘(II) RECOMMENDATIONS.—Not later than 30 

days after a determination by the Secretary of the 

Treasury, in consultation with the Pension Benefit 

Guaranty Corporation and the Secretary of Labor, 

that the plan is systemically important, the Participant and Plan Sponsor Advocate selected 

under section 4004 may submit recommendations 

to the Secretary of the Treasury with respect to 

the suspension or any revisions to the suspension. 

‘‘(III) SYSTEMICALLY IMPORTANT PLAN DE- FINED.— 

‘‘(aa) IN GENERAL.—For purposes of this 

subparagraph, a systemically important plan 


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is a plan with respect to which the Pension 

Benefit Guaranty Corporation projects the 

present value of projected financial assistance 

payments exceeds $1,000,000,000 if suspensions are not implemented. 

‘‘(bb) INDEXING.—For calendar years beginning after 2015, there shall be substituted for 

the dollar amount specified in item (aa) an 

amount equal to the product of such dollar 

amount and a fraction, the numerator of 

which is the contribution and benefit base (determined under section 230 of the Social Security Act) for the preceding calendar year and 

the denominator of which is such contribution 

and benefit base for calendar year 2014. If the 

amount otherwise determined under this item 

is not a multiple of $1,000,000, such amount 

shall be rounded to the next lowest multiple 

of $1,000,000. 

‘‘(vi) FINAL AUTHORIZATION TO SUSPEND.—In any 

case in which a suspension goes into effect following a 

vote pursuant to clause (ii) (or following a determination under clause (v) that the plan is a systemically 

important plan), the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall issue a final authorization to suspend with respect to the suspension 

not later than 7 days after such vote (or, in the case 

of a suspension that goes into effect under clause (v), 

at a time sufficient to allow the implementation of the 

suspension prior to the end of the 90-day period described in clause (v)(I)). 

‘‘(I) JUDICIAL REVIEW.— ‘‘(i) DENIAL OF APPLICATION.—An action by the plan 

sponsor challenging the denial of an application for 

suspension of benefits by the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, may only 

be brought following such denial. 

‘‘(ii) APPROVAL OF SUSPENSION OF BENEFITS.— 

‘‘(I) TIMING OF ACTION.—An action challenging a 

suspension of benefits under this paragraph may 

only be brought following a final authorization to 

suspend by the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, under subparagraph (H)(vi). 

‘‘(II) STANDARDS OF REVIEW.— 

‘‘(aa) IN GENERAL.—A court shall review an 

action challenging a suspension of benefits 

under this paragraph in accordance with section 706 of title 5, United States Code. 

‘‘(bb) TEMPORARY INJUNCTION.—A court reviewing an action challenging a suspension of 

benefits under this paragraph may not grant 


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a temporary injunction with respect to such 

suspension unless the court finds a clear and 

convincing likelihood that the plaintiff will 

prevail on the merits of the case. 

‘‘(iii) RESTRICTED CAUSE OF ACTION.—A participant 

or beneficiary affected by a benefit suspension under 

this paragraph shall not have a cause of action under 

this title. 

‘‘(iv) LIMITATION ON ACTION TO SUSPEND BENEFITS.— No action challenging a suspension of benefits following the final authorization to suspend or the denial 

of an application for suspension of benefits pursuant 

to this paragraph may be brought after one year after 

the earliest date on which the plaintiff acquired or 

should have acquired actual knowledge of the existence of such cause of action. 

‘‘(J) SPECIAL RULE FOR EMERGENCE FROM CRITICAL STA- TUS.—A plan certified to be in critical and declining status 

pursuant to projections made under subsection (b)(3) for 

which a suspension of benefits has been made by the plan 

sponsor pursuant to this paragraph shall not emerge from 

critical status under paragraph (4)(B), until such time as— 

‘‘(i) the plan is no longer certified to be in critical or 

endangered status under paragraphs (1) and (2) of 

subsection (b), and 

‘‘(ii) the plan is projected to avoid insolvency under 

section 4245.’’. 

(7) RULES RELATING TO WITHDRAWAL LIABILITY.— (A) BENEFIT SUSPENSIONS DISREGARDED.—Section 

305(g)(1) of the Employee Retirement Income Security Act 

of 1974, as added by section 109, is further amended by inserting ‘‘or benefit reductions or suspensions while in critical and declining status under subsection (e)(9)), unless 

the withdrawal occurs more than ten years after the effective date of a benefit suspension by a plan in critical and 

declining status,’’ after ‘‘benefit reductions under subsection (e)(8) or (f)’’. 

(B) AUTHORITY OF PLAN TO SUBORDINATE WITHDRAWAL

LIABILITY CLAIMS.—Section 4219(d) of such Act (29 U.S.C. 

1399(d)) is amended by striking the period at the end and 

inserting ‘‘or to any arrangement relating to withdrawal liability involving the plan.’’. 

(C) CIVIL ACTIONS.—Section 4003(f)(1) of such Act (29 

U.S.C. 1303)(f)(1)) is amended by inserting ‘‘plan sponsor,’’ 

before ‘‘fiduciary’’. 

(8) GUIDANCE.—Not later than 180 days after the date of the 

enactment of this Act, the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and 

the Secretary of Labor, shall publish appropriate guidance to 

implement section 305(e)(9) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1085(e)(9)). 

(b) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.— 

(1) GENERAL RULE FOR PLAN IN CRITICAL AND DECLINING STATUS.—Section 432(a) of the Internal Revenue Code of 1986 is 

amended— 


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(A) in paragraph (1)(B), by striking ‘‘and’’ at the end; 

(B) in paragraph (2)(B), by striking the period at the end 

and inserting ‘‘, and’’; and 

(C) by adding at the end the following: 

‘‘(3) if the plan is in critical and declining status— 

‘‘(A) the requirements of paragraph (2) shall apply to the 

plan; and 

‘‘(B) the plan sponsor may, by plan amendment, suspend 

benefits in accordance with the requirements of subsection 

(e)(9).’’. 

(2) CRITICAL AND DECLINING STATUS DEFINED.—Section 

432(b) of the Internal Revenue Code of 1986, as amended by 

sections 102 and 104, is further amended by adding at the end 

the following: 

‘‘(6) CRITICAL AND DECLINING STATUS.—For purposes of this 

section, a plan in critical status shall be treated as in critical 

and declining status if the plan is described in one or more of 

subparagraphs (A), (B), (C), and (D) of paragraph (2) and the 

plan is projected to become insolvent within the meaning of 

section 418E during the current plan year or any of the 14 succeeding plan years (19 succeeding plan years if the plan has 

a ratio of inactive participants to active participants that exceeds 2 to 1 or if the funded percentage of the plan is less than 

80 percent).’’. 

(3) ANNUAL CERTIFICATION.—Section 432(b)(3)(A)(i) of the Internal Revenue Code of 1986 is amended— 

(A) by striking ‘‘and whether’’ and inserting ‘‘, whether’’, 

and 

(B) by inserting ‘‘, and whether or not the plan is or will 

be in critical and declining status for such plan year’’ before ‘‘, and’’ at the end. 

(4) PROJECTIONS OF ASSETS AND LIABILITIES.—Section 

432(b)(3)(B) of the Internal Revenue Code of 1986 is amended 

by adding at the end the following: 

‘‘(iv) PROJECTIONS OF CRITICAL AND DECLINING STA- TUS.—In determining whether a plan is in critical and 

declining status as described in subsection (e)(9), 

clauses (i), (ii), and (iii) shall apply, except that— 

‘‘(I) if reasonable, the plan actuary shall assume 

that each contributing employer in compliance 

continues to comply through the end of the rehabilitation period or such later time as provided in 

subsection (e)(3)(A)(ii) with the terms of the rehabilitation plan that correspond to the schedule 

adopted or imposed under subsection (e), and 

‘‘(II) the plan actuary shall take into account 

any suspensions of benefits described in subsection (e)(9) adopted in a prior plan year that are 

still in effect.’’. 

(5) BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN

CRITICAL AND DECLINING STATUS.—Section 432(e) of the Internal Revenue Code of 1986 (as amended by section 109) is 

amended by inserting after paragraph (8) the following: 

‘‘(9) BENEFIT SUSPENSIONS FOR MULTIEMPLOYER PLANS IN

CRITICAL AND DECLINING STATUS.— 


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‘‘(A) IN GENERAL.—Notwithstanding section 411(d)(6) 

and subject to subparagraphs (B) through (I), the plan 

sponsor of a plan in critical and declining status may, by 

plan amendment, suspend benefits which the sponsor 

deems appropriate. 

‘‘(B) SUSPENSION OF BENEFITS.— 

‘‘(i) SUSPENSION OF BENEFITS DEFINED.—For purposes of this subsection, the term ‘suspension of benefits’ means the temporary or permanent reduction of 

any current or future payment obligation of the plan 

to any participant or beneficiary under the plan, 

whether or not in pay status at the time of the suspension of benefits. 

‘‘(ii) LENGTH OF SUSPENSIONS.—Any suspension of 

benefits made under subparagraph (A) shall remain in 

effect until the earlier of when the plan sponsor provides benefit improvements in accordance with subparagraph (E) or the suspension of benefits expires by 

its own terms. 

‘‘(iii) NO LIABILITY.—The plan shall not be liable for 

any benefit payments not made as a result of a suspension of benefits under this paragraph. 

‘‘(iv) APPLICABILITY.—For purposes of this paragraph, all references to suspensions of benefits, increases in benefits, or resumptions of suspended benefits with respect to participants shall also apply with 

respect to benefits of beneficiaries or alternative payees of participants. 

‘‘(v) RETIREE REPRESENTATIVE.— 

‘‘(I) IN GENERAL.—In the case of a plan with 

10,000 or more participants, not later than 60 

days prior to the plan sponsor submitting an application to suspend benefits, the plan sponsor 

shall select a participant of the plan in pay status 

to act as a retiree representative. The retiree representative shall advocate for the interests of the 

retired and deferred vested participants and beneficiaries of the plan throughout the suspension approval process. 

‘‘(II) REASONABLE EXPENSES FROM PLAN.—The 

plan shall provide for reasonable expenses by the 

retiree representative, including reasonable legal 

and actuarial support, commensurate with the 

plan’s size and funded status. 

‘‘(III) SPECIAL RULE RELATING TO FIDUCIARY STATUS.—Duties performed pursuant to subclause (I) 

shall not be subject to section 4975. The preceding 

sentence shall not apply to those duties associated 

with an application to suspend benefits pursuant 

to subparagraph (G) that are performed by the retiree representative who is also a plan trustee. 

‘‘(C) CONDITIONS FOR SUSPENSIONS.—The plan sponsor of 

a plan in critical and declining status for a plan year may 

suspend benefits only if the following conditions are met: 


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‘‘(i) Taking into account the proposed suspensions of 

benefits (and, if applicable, a proposed partition of the 

plan under section 4233 of the Employee Retirement 

Income Security Act of 1974), the plan actuary certifies that the plan is projected to avoid insolvency 

within the meaning of section 418E, assuming the suspensions of benefits continue until the suspensions of 

benefits expire by their own terms or if no such expiration date is set, indefinitely. 

‘‘(ii) The plan sponsor determines, in a written 

record to be maintained throughout the period of the 

benefit suspension, that the plan is still projected to 

become insolvent unless benefits are suspended under 

this paragraph, although all reasonable measures to 

avoid insolvency have been taken (and continue to be 

taken during the period of the benefit suspension). In 

its determination, the plan sponsor may take into account factors including the following: 

‘‘(I) Current and past contribution levels. 

‘‘(II) Levels of benefit accruals (including any 

prior reductions in the rate of benefit accruals). 

‘‘(III) Prior reductions (if any) of adjustable benefits. 

‘‘(IV) Prior suspensions (if any) of benefits under 

this subsection. 

‘‘(V) The impact on plan solvency of the subsidies and ancillary benefits available to active 

participants. 

‘‘(VI) Compensation levels of active participants 

relative to employees in the participants’ industry 

generally. 

‘‘(VII) Competitive and other economic factors 

facing contributing employers. 

‘‘(VIII) The impact of benefit and contribution 

levels on retaining active participants and bargaining groups under the plan. 

‘‘(IX) The impact of past and anticipated contribution increases under the plan on employer attrition and retention levels. 

‘‘(X) Measures undertaken by the plan sponsor 

to retain or attract contributing employers. 

‘‘(D) LIMITATIONS ON SUSPENSIONS.—Any suspensions of 

benefits made by a plan sponsor pursuant to this paragraph shall be subject to the following limitations: 

‘‘(i) The monthly benefit of any participant or beneficiary may not be reduced below 110 percent of the 

monthly benefit which is guaranteed by the Pension 

Benefit Guaranty Corporation under section 4022A of 

the Employee Retirement Income Security Act of 1974 

on the date of the suspension. 

‘‘(ii)(I) In the case of a participant or beneficiary who 

has attained 75 years of age as of the effective date of 

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ticipant or beneficiary may be suspended under this 

paragraph. 

‘‘(II) For purposes of subclause (I), the maximum 

suspendable benefits of a participant or beneficiary is 

the portion of the benefits of such participant or beneficiary that would be suspended pursuant to this paragraph without regard to this clause; 

‘‘(III) For purposes of subclause (I), the applicable 

percentage is a percentage equal to the quotient obtained by dividing— 

‘‘(aa) the number of months during the period 

beginning with the month after the month in 

which occurs the effective date of the suspension 

and ending with the month during which the participant or beneficiary attains the age of 80, by 

‘‘(bb) 60 months. 

‘‘(iii) No benefits based on disability (as defined 

under the plan) may be suspended under this paragraph. 

‘‘(iv) Any suspensions of benefits, in the aggregate 

(and, if applicable, considered in combination with a 

partition of the plan under section 4233 of the Employee Retirement Income Security Act of 1974), shall 

be reasonably estimated to achieve, but not materially 

exceed, the level that is necessary to avoid insolvency. 

‘‘(v) In any case in which a suspension of benefits 

with respect to a plan is made in combination with a 

partition of the plan under section 4233 of the Employee Retirement Income Security Act of 1974, the 

suspension of benefits may not take effect prior to the 

effective date of such partition. 

‘‘(vi) Any suspensions of benefits shall be equitably 

distributed across the participant and beneficiary population, taking into account factors, with respect to 

participants and beneficiaries and their benefits, that 

may include one or more of the following: 

‘‘(I) Age and life expectancy. 

‘‘(II) Length of time in pay status. 

‘‘(III) Amount of benefit. 

‘‘(IV) Type of benefit: survivor, normal retirement, early retirement. 

‘‘(V) Extent to which participant or beneficiary 

is receiving a subsidized benefit. 

‘‘(VI) Extent to which participant or beneficiary 

has received post-retirement benefit increases. 

‘‘(VII) History of benefit increases and reductions. 

‘‘(VIII) Years to retirement for active employees. 

‘‘(IX) Any discrepancies between active and retiree benefits. 

‘‘(X) Extent to which active participants are reasonably likely to withdraw support for the plan, 

accelerating employer withdrawals from the plan 

and increasing the risk of additional benefit reductions for participants in and out of pay status. 


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‘‘(XI) Extent to which benefits are attributed to 

service with an employer that failed to pay its full 

withdrawal liability. 

‘‘(vii) In the case of a plan that includes the benefits 

described in clause (III), benefits suspended under this 

paragraph shall— 

‘‘(I) first, be applied to the maximum extent permissible to benefits attributable to a participant’s 

service for an employer which withdrew from the 

plan and failed to pay (or is delinquent with respect to paying) the full amount of its withdrawal 

liability under section 4201(b)(1) of the Employee 

Retirement Income Security Act of 1974 or an 

agreement with the plan, 

‘‘(II) second, except as provided by subclause 

(III), be applied to all other benefits that may be 

suspended under this paragraph, and 

‘‘(III) third, be applied to benefits under a plan 

that are directly attributable to a participant’s 

service with any employer which has, prior to the 

date of enactment of the Multiemployer Pension 

Reform Act of 2014— 

‘‘(aa) withdrawn from the plan in a complete withdrawal under section 4203 of the 

Employee Retirement Income Security Act of 

1974 and has paid the full amount of the employer’s withdrawal liability under section 

4201(b)(1) of such Act or an agreement with 

the plan, and 

‘‘(bb) pursuant to a collective bargaining 

agreement, assumed liability for providing 

benefits to participants and beneficiaries of 

the plan under a separate, single-employer 

plan sponsored by the employer, in an amount 

equal to any amount of benefits for such participants and beneficiaries reduced as a result 

of the financial status of the plan. 

‘‘(E) BENEFIT IMPROVEMENTS.— ‘‘(i) IN GENERAL.—The plan sponsor may, in its sole 

discretion, provide benefit improvements while any 

suspension of benefits under the plan remains in effect, except that the plan sponsor may not increase the 

liabilities of the plan by reason of any benefit improvement for any participant or beneficiary not in pay status by the first day of the plan year for which the benefit improvement takes effect, unless— 

‘‘(I) such action is accompanied by equitable 

benefit improvements in accordance with clause 

(ii) for all participants and beneficiaries whose 

benefit commencement dates were before the first 

day of the plan year for which the benefit improvement for such participant or beneficiary not 

in pay status took effect; and 

‘‘(II) the plan actuary certifies that after taking 

into account such benefits improvements the plan 


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is projected to avoid insolvency indefinitely under 

section 418E. 

‘‘(ii) EQUITABLE DISTRIBUTION OF BENEFIT IMPROVE- MENTS.— 

‘‘(I) LIMITATION.—The projected value of the 

total liabilities for benefit improvements for participants and beneficiaries not in pay status by 

the date of the first day of the plan year in which 

the benefit improvements are proposed to take effect, as determined as of such date, may not exceed the projected value of the liabilities arising 

from benefit improvements for participants and 

beneficiaries with benefit commencement dates 

prior to the first day of such plan year, as so determined. 

‘‘(II) EQUITABLE DISTRIBUTION OF BENEFITS.— 

The plan sponsor shall equitably distribute any 

increase in total liabilities for benefit improvements in clause (i) to some or all of the participants and beneficiaries whose benefit commencement date is before the date of the first day of the 

plan year in which the benefit improvements are 

proposed to take effect, taking into account the 

relevant factors described in subparagraph (D)(vi) 

and the extent to which the benefits of the participants and beneficiaries were suspended. 

‘‘(iii) SPECIAL RULE FOR RESUMPTIONS OF BENEFITS

ONLY FOR PARTICIPANTS IN PAY STATUS.—The plan 

sponsor may increase liabilities of the plan through a 

resumption of benefits for participants and beneficiaries in pay status only if the plan sponsor equitably distributes the value of resumed benefits to some 

or all of the participants and beneficiaries in pay status, taking into account the relevant factors described 

in subparagraph (D)(vi). 

‘‘(iv) SPECIAL RULE FOR CERTAIN BENEFIT IN- CREASES.—This subparagraph shall not apply to a resumption of suspended benefits or plan amendment 

which increases liabilities with respect to participants 

and beneficiaries not in pay status by the first day of 

the plan year in which the benefit improvements took 

effect which— 

‘‘(I) the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, determines to be 

reasonable and which provides for only de minimis increases in the liabilities of the plan, or 

‘‘(II) is required as a condition of qualification 

under part I of subchapter D of chapter 1 of subtitle A or to comply with other applicable law, as 

determined by the Secretary of the Treasury. 

‘‘(v) ADDITIONAL LIMITATIONS.—Except for resumptions of suspended benefits described in clause (iii), 

the limitations on benefit improvements while a suspension of benefits is in effect under this paragraph 


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shall be in addition to any other applicable limitations 

on increases in benefits imposed on a plan. 

‘‘(vi) DEFINITION OF BENEFIT IMPROVEMENT.—For 

purposes of this subparagraph, the term ‘benefit improvement’ means, with respect to a plan, a resumption of suspended benefits, an increase in benefits, an 

increase in the rate at which benefits accrue, or an increase in the rate at which benefits become nonforfeitable under the plan. 

‘‘(F) NOTICE REQUIREMENTS.— ‘‘(i) IN GENERAL.—No suspension of benefits may be 

made pursuant to this paragraph unless notice of such 

proposed suspension has been given by the plan sponsor concurrently with an application for approval of 

such suspension submitted under subparagraph (G) to 

the Secretary of the Treasury to— 

‘‘(I) such plan participants and beneficiaries who 

may be contacted by reasonable efforts, 

‘‘(II) each employer who has an obligation to 

contribute (within the meaning of section 4212(a) 

of the Employee Retirement Income Security Act 

of 1974) under the plan, and 

‘‘(III) each employee organization which, for purposes of collective bargaining, represents plan participants employed by such an employer. 

‘‘(ii) CONTENT OF NOTICE.—The notice under clause 

(i) shall contain— 

‘‘(I) sufficient information to enable participants 

and beneficiaries to understand the effect of any 

suspensions of benefits, including an individualized estimate (on an annual or monthly basis) of 

such effect on each participant or beneficiary, 

‘‘(II) a description of the factors considered by 

the plan sponsor in designing the benefit suspensions, 

‘‘(III) a statement that the application for approval of any suspension of benefits shall be available on the website of the Department of the 

Treasury and that comments on such application 

will be accepted, 

‘‘(IV) information as to the rights and remedies 

of plan participants and beneficiaries, 

‘‘(V) if applicable, a statement describing the appointment of a retiree representative, the date of 

appointment of such representative, identifying 

information about the retiree representative (including whether the representative is a plan trustee), and how to contact such representative, and 

‘‘(VI) information on how to contact the Department of the Treasury for further information and 

assistance where appropriate. 

‘‘(iii) FORM AND MANNER.—Any notice under clause 

(i)— 

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ury, in consultation with the Pension Benefit 

Guaranty Corporation and the Secretary of Labor, 

notwithstanding any other provision of law, 

‘‘(II) shall be written in a manner so as to be 

understood by the average plan participant, and 

‘‘(III) may be provided in written, electronic, or 

other appropriate form to the extent such form is 

reasonably accessible to persons to whom the notice is required to be provided. 

‘‘(iv) OTHER NOTICE REQUIREMENT.—Any notice provided under clause (i) shall fulfill the requirement for 

notice of a significant reduction in benefits described 

in section 4980F. 

‘‘(v) MODEL NOTICE.—The Secretary of the Treasury, 

in consultation with the Pension Benefit Guaranty 

Corporation and the Secretary of Labor, shall in the 

guidance prescribed under clause (iii)(I) establish a 

model notice that a plan sponsor may use to meet the 

requirements of this subparagraph. 

‘‘(G) APPROVAL PROCESS BY THE SECRETARY OF THE

TREASURY IN CONSULTATION WITH THE PENSION BENEFIT

GUARANTY CORPORATION AND THE SECRETARY OF LABOR.— ‘‘(i) IN GENERAL.—The plan sponsor of a plan in critical and declining status for a plan year that seeks to 

suspend benefits must submit an application to the 

Secretary of the Treasury for approval of the suspensions of benefits. If the plan sponsor submits an application for approval of the suspensions, the Secretary of 

the Treasury shall approve, in consultation with the 

Pension Benefit Guaranty Corporation and the Secretary of Labor, the application upon finding that the 

plan is eligible for the suspensions and has satisfied 

the criteria of subparagraphs (C), (D), (E), and (F). 

‘‘(ii) SOLICITATION OF COMMENTS.—Not later than 30 

days after receipt of the application under clause (i), 

the Secretary of the Treasury, in consultation with the 

Pension Benefit Guaranty Corporation and the Secretary of Labor, shall publish a notice in the Federal 

Register soliciting comments from contributing employers, employee organizations, and participants and 

beneficiaries of the plan for which an application was 

made and other interested parties. The application for 

approval of the suspension of benefits shall be published on the website of the Department of the Treasury. 

‘‘(iii) REQUIRED ACTION; DEEMED APPROVAL.—The 

Secretary of the Treasury, in consultation with the 

Pension Benefit Guaranty Corporation and the Secretary of Labor, shall approve or deny any application 

for suspensions of benefits under this paragraph within 225 days after the submission of such application. 

An application for suspension of benefits shall be 

deemed approved unless, within such 225 days, the 

Secretary of the Treasury notifies the plan sponsor 

that it has failed to satisfy one or more of the criteria 


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described in this paragraph. If the Secretary of the 

Treasury, in consultation with the Pension Benefit 

Guaranty Corporation and the Secretary of Labor, rejects a plan sponsor’s application, the Secretary of the 

Treasury shall provide notice to the plan sponsor detailing the specific reasons for the rejection, including 

reference to the specific requirement not satisfied. Approval or denial by the Secretary of the Treasury, in 

consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, of an application 

shall be treated as final agency action for purposes of 

section 704 of title 5, United States Code. 

‘‘(iv) AGENCY REVIEW.—In evaluating whether the 

plan sponsor has met the criteria specified in clause 

(ii) of subparagraph (C), the Secretary of the Treasury, 

in consultation with the Pension Benefit Guaranty 

Corporation and the Secretary of Labor, shall review 

the plan sponsor’s consideration of factors under such 

clause. 

‘‘(v) STANDARD FOR ACCEPTING PLAN SPONSOR DETERMINATIONS.—In evaluating the plan sponsor’s application, the Secretary of the Treasury shall accept the 

plan sponsor’s determinations unless it concludes, in 

consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, that the plan 

sponsor’s determinations were clearly erroneous. 

‘‘(H) PARTICIPANT RATIFICATION PROCESS.— 

‘‘(i) IN GENERAL.—No suspension of benefits may 

take effect pursuant to this paragraph prior to a vote 

of the participants of the plan with respect to the suspension. 

‘‘(ii) ADMINISTRATION OF VOTE.—Not later than 30 

days after approval of the suspension by the Secretary 

of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, 

under subparagraph (G), the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall administer a vote of participants and beneficiaries of the 

plan. Except as provided in clause (v), the suspension 

shall go into effect following the vote unless a majority 

of all participants and beneficiaries of the plan vote to 

reject the suspension. The plan sponsor may submit a 

new suspension application to the Secretary of the 

Treasury for approval in any case in which a suspension is prohibited from taking effect pursuant to a vote 

under this subparagraph. 

‘‘(iii) BALLOTS.—The plan sponsor shall provide a 

ballot for the vote (subject to approval by the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary 

of Labor) that includes the following: 

‘‘(I) A statement from the plan sponsor in support of the suspension. 


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‘‘(II) A statement in opposition to the suspension 

compiled from comments received pursuant to 

subparagraph (G)(ii). 

‘‘(III) A statement that the suspension has been 

approved by the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor. 

‘‘(IV) A statement that the plan sponsor has determined that the plan will become insolvent unless the suspension takes effect. 

‘‘(V) A statement that insolvency of the plan 

could result in benefits lower than benefits paid 

under the suspension. 

‘‘(VI) A statement that insolvency of the Pension 

Benefit Guaranty Corporation would result in 

benefits lower than benefits paid in the case of 

plan insolvency. 

‘‘(iv) COMMUNICATION BY PLAN SPONSOR.—It is the 

sense of Congress that, depending on the size and resources of the plan and geographic distribution of the 

plan’s participants, the plan sponsor should take such 

steps as may be necessary to inform participants 

about proposed benefit suspensions through in-person 

meetings, telephone or internet-based communications, 

mailed information, or by other means. 

‘‘(v) SYSTEMICALLY IMPORTANT PLANS.— ‘‘(I) IN GENERAL.—Not later than 14 days after 

a vote under this subparagraph rejecting a suspension, the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall determine whether the plan is a systemically important 

plan. If the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, determines that 

the plan is a systemically important plan, not 

later than the end of the 90-day period beginning 

on the date the results of the vote are certified, 

the Secretary of the Treasury shall, notwithstanding such adverse vote— 

‘‘(aa) permit the implementation of the suspension proposed by the plan sponsor; or 

‘‘(bb) permit the implementation of a modification by the Secretary of the Treasury, in 

consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, 

of such suspension (so long as the plan is projected to avoid insolvency within the meaning 

of section 4245 of the Employee Retirement 

Income Security Act of 1974 under such modification). 

‘‘(II) RECOMMENDATIONS.—Not later than 30 

days after a determination by the Secretary of the 

Treasury, in consultation with the Pension Benefit 

Guaranty Corporation and the Secretary of Labor, 


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that the plan is systemically important, the Participant and Plan Sponsor Advocate selected 

under section 4004 of the Employee Retirement 

Income Security Act of 1974 may submit recommendations to the Secretary of the Treasury 

with respect to the suspension or any revisions to 

the suspension. 

‘‘(III) SYSTEMICALLY IMPORTANT PLAN DE- FINED.— 

‘‘(aa) IN GENERAL.—For purposes of this 

subparagraph, a systemically important plan 

is a plan with respect to which the Pension 

Benefit Guaranty Corporation projects the 

present value of projected financial assistance 

payments exceeds $1,000,000,000 if suspensions are not implemented. 

‘‘(bb) INDEXING.—For calendar years beginning after 2015, there shall be substituted for 

the dollar amount specified in item (aa) an 

amount equal to the product of such dollar 

amount and a fraction, the numerator of 

which is the contribution and benefit base (determined under section 230 of the Social Security Act) for the preceding calendar year and 

the denominator of which is such contribution 

and benefit base for calendar year 2014. If the 

amount otherwise determined under this item 

is not a multiple of $1,000,000, such amount 

shall be rounded to the next lowest multiple 

of $1,000,000. 

‘‘(vi) FINAL AUTHORIZATION TO SUSPEND.—In any 

case in which a suspension goes into effect following a 

vote pursuant to clause (ii) (or following a determination under clause (v) that the plan is a systemically 

important plan), the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall issue a final authorization to suspend with respect to the suspension 

not later than 7 days after such vote (or, in the case 

of a suspension that goes into effect under clause (v), 

at a time sufficient to allow the implementation of the 

suspension prior to the end of the 90-day period described in clause (v)(I)). 

‘‘(I) JUDICIAL REVIEW.— 

‘‘(i) DENIAL OF APPLICATION.—An action by the plan 

sponsor challenging the denial of an application for 

suspension of benefits by the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, may only 

be brought following such denial. 

‘‘(ii) APPROVAL OF SUSPENSION OF BENEFITS.— ‘‘(I) TIMING OF ACTION.—An action challenging a 

suspension of benefits under this paragraph may 

only be brought following a final authorization to 

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sultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, under subparagraph (H)(vi). 

‘‘(II) STANDARDS OF REVIEW.— 

‘‘(aa) IN GENERAL.—A court shall review an 

action challenging a suspension of benefits 

under this paragraph in accordance with section 706 of title 5, United States Code. 

‘‘(bb) TEMPORARY INJUNCTION.—A court reviewing an action challenging a suspension of 

benefits under this paragraph may not grant 

a temporary injunction with respect to such 

suspension unless the court finds a clear and 

convincing likelihood that the plaintiff will 

prevail on the merits of the case. 

‘‘(iii) RESTRICTED CAUSE OF ACTION.—A participant 

or beneficiary affected by a benefit suspension under 

this paragraph shall not have a cause of action under 

this title. 

‘‘(iv) LIMITATION ON ACTION TO SUSPEND BENEFITS.— 

No action challenging a suspension of benefits following the final authorization to suspend or the denial 

of an application for suspension of benefits pursuant 

to this paragraph may be brought after one year after 

the earliest date on which the plaintiff acquired or 

should have acquired actual knowledge of the existence of such cause of action. 

‘‘(J) SPECIAL RULE FOR EMERGENCE FROM CRITICAL STATUS.—A plan certified to be in critical and declining status 

pursuant to projections made under subsection (b)(3) for 

which a suspension of benefits has been made by the plan 

sponsor pursuant to this paragraph shall not emerge from 

critical status under paragraph (4)(B), until such time as— 

‘‘(i) the plan is no longer certified to be in critical or 

endangered status under paragraphs (1) and (2) of 

subsection (b), and 

‘‘(ii) the plan is projected to avoid insolvency under 

section 418E.’’. 

(6) RULE RELATING TO WITHDRAWAL LIABILITY.—Section 

432(g)(1) of the Internal Revenue Code of 1986, as added by 

section 109, is further amended by inserting ‘‘, or benefit reductions or suspensions while in critical and declining status 

under subsection (e)(9)), unless the withdrawal occurs more 

than ten years after the effective date of a benefit suspension 

by a plan in critical and declining status,’’ after ‘‘benefit reductions under subsection (e)(8) or (f)’’. 

(7) GUIDANCE.—Not later than 180 days after the date of the 

enactment of this Act, the Secretary of the Treasury, in consultation with the Pension Benefit Guaranty Corporation and 

the Secretary of Labor, shall publish appropriate guidance to 

implement section 432(e)(9) of the Internal Revenue Code of 

1986. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date of the enactment of this Act. 


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DIVISION P—OTHER RETIREMENTRELATED MODIFICATIONS 

SECTION 1. SUBSTANTIAL CESSATION OF OPERATIONS. 

(a) IN GENERAL.—Subsection (e) of section 4062 of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1362) is amended to read as follows: 

‘‘(e) TREATMENT OF SUBSTANTIAL CESSATION OF OPERATIONS.— 

‘‘(1) GENERAL RULE.—Except as provided in paragraphs (3) 

and (4), if there is a substantial cessation of operations at a facility in any location, the employer shall be treated with respect to any single employer plan established and maintained 

by the employer covering participants at such facility as if the 

employer were a substantial employer under a plan under 

which more than one employer makes contributions and the 

provisions of sections 4063, 4064, and 4065 shall apply. 

‘‘(2) SUBSTANTIAL CESSATION OF OPERATIONS.—For purposes 

of this subsection: 

‘‘(A) IN GENERAL.—The term ‘substantial cessation of operations’ means a permanent cessation of operations at a 

facility which results in a workforce reduction of a number 

of eligible employees at the facility equivalent to more 

than 15 percent of the number of all eligible employees of 

the employer, determined immediately before the earlier 

of— 

‘‘(i) the date of the employer’s decision to implement 

such cessation, or 

‘‘(ii) in the case of a workforce reduction which includes 1 or more eligible employees described in paragraph (6)(B), the earliest date on which any such eligible employee was separated from employment. 

‘‘(B) WORKFORCE REDUCTION.—Subject to subparagraphs 

(C) and (D), the term ‘workforce reduction’ means the 

number of eligible employees at a facility who are separated from employment by reason of the permanent cessation of operations of the employer at the facility. 

‘‘(C) RELOCATION OF WORKFORCE.—An eligible employee 

separated from employment at a facility shall not be taken 

into account in computing a workforce reduction if, within 

a reasonable period of time, the employee is replaced by 

the employer, at the same or another facility located in the 

United States, by an employee who is a citizen or resident 

of the United States. 

‘‘(D) DISPOSITIONS.—If, whether by reason of a sale or 

other disposition of the assets or stock of a contributing 

sponsor (or any member of the same controlled group as 

such a sponsor) of the plan relating to operations at a facility or otherwise, an employer (the ‘transferee employer’) 

other than the employer which experiences the substantial 

cessation of operations (the ‘transferor employer’) conducts 

any portion of such operations, then— 

‘‘(i) an eligible employee separated from employment 

with the transferor employer at the facility shall not 


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be taken into account in computing a workforce reduction if— 

‘‘(I) within a reasonable period of time, the employee is replaced by the transferee employer by 

an employee who is a citizen or resident of the 

United States; and 

‘‘(II) in the case of an eligible employee who is 

a participant in a single employer plan maintained by the transferor employer, the transferee 

employer, within a reasonable period of time, 

maintains a single employer plan which includes 

the assets and liabilities attributable to the accrued benefit of the eligible employee at the time 

of separation from employment with the transferor employer; and 

‘‘(ii) an eligible employee who continues to be employed at the facility by the transferee employer shall 

not be taken into account in computing a workforce reduction if— 

‘‘(I) the eligible employee is not a participant in 

a single employer plan maintained by the transferor employer, or 

‘‘(II) in any other case, the transferee employer, 

within a reasonable period of time, maintains a 

single employer plan which includes the assets 

and liabilities attributable to the accrued benefit 

of the eligible employee at the time of separation 

from employment with the transferor employer. 

‘‘(3) EXEMPTION FOR PLANS WITH LIMITED UNDERFUNDING.— 

Paragraph (1) shall not apply with respect to a single employer 

plan if, for the plan year preceding the plan year in which the 

cessation occurred— 

‘‘(A) there were fewer than 100 participants with accrued 

benefits under the plan as of the valuation date of the plan 

for the plan year (as determined under section 303(g)(2)); 

or 

‘‘(B) the ratio of the market value of the assets of the 

plan to the funding target of the plan for the plan year 

was 90 percent or greater. 

‘‘(4) ELECTION TO MAKE ADDITIONAL CONTRIBUTIONS TO SATISFY LIABILITY.— 

‘‘(A) IN GENERAL.—An employer may elect to satisfy the 

employer’s liability with respect to a plan by reason of 

paragraph (1) by making additional contributions to the 

plan in the amount determined under subparagraph (B) 

for each plan year in the 7-plan-year period beginning with 

the plan year in which the cessation occurred. Any such 

additional contribution for a plan year shall be in addition 

to any minimum required contribution under section 303 

for such plan year and shall be paid not later than the earlier of— 

‘‘(i) the due date for the minimum required contribution for such year under section 303(j); or 

‘‘(ii) in the case of the first such contribution, the 

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ployer notifies the Corporation of the substantial cessation of operations or the date the Corporation determines a substantial cessation of operations has occurred, and in the case of subsequent contributions, 

the same date in each succeeding year. 

‘‘(B) AMOUNT DETERMINED.— 

‘‘(i) IN GENERAL.—Except as provided in clause (iii), 

the amount determined under this subparagraph with 

respect to each plan year in the 7-plan-year period is 

the product of— 

‘‘(I) 1⁄7 of the unfunded vested benefits determined under section 4006(a)(3)(E) as of the valuation date of the plan (as determined under section 303(g)(2)) for the plan year preceding the 

plan year in which the cessation occurred; and 

‘‘(II) the reduction fraction. 

‘‘(ii) REDUCTION FRACTION.—For purposes of clause 

(i), the reduction fraction of a single employer plan is 

equal to— 

‘‘(I) the number of participants with accrued 

benefits in the plan who were included in computing the workforce reduction under paragraph 

(2)(B) as a result of the cessation of operations at 

the facility; divided by 

‘‘(II) the number of eligible employees of the employer who are participants with accrued benefits 

in the plan, determined as of the same date the 

determination under paragraph (2)(A) is made. 

‘‘(iii) LIMITATION.—The additional contribution 

under this subparagraph for any plan year shall not 

exceed the excess, if any, of— 

‘‘(I) 25 percent of the difference between the 

market value of the assets of the plan and the 

funding target of the plan for the preceding plan 

year; over 

‘‘(II) the minimum required contribution under 

section 303 for the plan year. 

‘‘(C) PERMITTED CESSATION OF ANNUAL INSTALLMENTS

WHEN PLAN BECOMES SUFFICIENTLY FUNDED.—An employer’s obligation to make additional contributions under this 

paragraph shall not apply to— 

‘‘(i) the first plan year (beginning on or after the 

first day of the plan year in which the cessation occurs) for which the ratio of the market value of the assets of the plan to the funding target of the plan for 

the plan year is 90 percent or greater, or 

‘‘(ii) any plan year following such first plan year. 

‘‘(D) COORDINATION WITH FUNDING WAIVERS.— 

‘‘(i) IN GENERAL.—If the Secretary of the Treasury 

issues a funding waiver under section 302(c) with respect to the plan for a plan year in the 7-plan-year period under subparagraph (A), the additional contribution with respect to such plan year shall be permanently waived. 


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‘‘(ii) NOTICE.—An employer maintaining a plan with 

respect to which such a funding waiver has been 

issued or a request for such a funding waiver is pending shall provide notice to the Secretary of the Treasury, in such form and at such time as the Secretary 

of the Treasury shall provide, of a cessation of operations to which paragraph (1) applies. 

‘‘(E) ENFORCEMENT.— ‘‘(i) NOTICE.—An employer making the election 

under this paragraph shall provide notice to the Corporation, in accordance with rules prescribed by the 

Corporation, of— 

‘‘(I) such election, not later than 30 days after 

the earlier of the date the employer notifies the 

Corporation of the substantial cessation of operations or the date the Corporation determines a 

substantial cessation of operations has occurred; 

‘‘(II) the payment of each additional contribution, not later than 10 days after such payment; 

‘‘(III) any failure to pay the additional contribution in the full amount for any year in the 7-planyear period, not later than 10 days after the due 

date for such payment; 

‘‘(IV) the waiver under subparagraph (D)(i) of 

the obligation to make an additional contribution 

for any year, not later than 30 days after the 

funding waiver described in such subparagraph is 

granted; and 

‘‘(V) the cessation of any obligation to make additional contributions under subparagraph (C), not 

later than 10 days after the due date for payment 

of the additional contribution for the first plan 

year to which such cessation applies. 

‘‘(ii) ACCELERATION OF LIABILITY TO THE PLAN FOR

FAILURE TO PAY.—If an employer fails to pay the additional contribution in the full amount for any year in 

the 7-plan-year period by the due date for such payment, the employer shall, as of such date, be liable to 

the plan in an amount equal to the balance which remains unpaid as of such date of the aggregate amount 

of additional contributions required to be paid by the 

employer during such 7-year-plan period. The Corporation may waive or settle the liability described in 

the preceding sentence, at the discretion of the Corporation. 

‘‘(iii) CIVIL ACTION.—The Corporation may bring a 

civil action in the district courts of the United States 

in accordance with section 4003(e) to compel an employer making such election to pay the additional contributions required under this paragraph. 

‘‘(5) DEFINITIONS.—For purposes of this subsection: 

‘‘(A) ELIGIBLE EMPLOYEE.—The term ‘eligible employee’ 

means an employee who is eligible to participate in an employee pension benefit plan (as defined in section 3(2)) established and maintained by the employer. 


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‘‘(B) FUNDING TARGET.—The term ‘funding target’ means, 

with respect to any plan year, the funding target as determined under section 4006(a)(3)(E)(iii)(I) for purposes of determining the premium paid to the Corporation under section 4007 for the plan year. 

‘‘(C) MARKET VALUE.—The market value of the assets of 

a plan shall be determined in the same manner as for purposes of section 4006(a)(3)(E). 

‘‘(6) SPECIAL RULES.— 

‘‘(A) CHANGE IN OPERATION OF CERTAIN FACILITIES AND

PROPERTY.—For purposes of paragraphs (1) and (2), an employer shall not be treated as ceasing operations at a 

qualified lodging facility (as defined in section 856(d)(9)(D) 

of the Internal Revenue Code of 1986) if such operations 

are continued by an eligible independent contractor (as defined in section 856(d)(9)(A) of such Code) pursuant to an 

agreement with the employer. 

‘‘(B) AGGREGATION OF PRIOR SEPARATIONS.—The workforce reduction under paragraph (2) with respect to any 

cessation of operations shall be determined by taking into 

account any separation from employment of any eligible 

employee at the facility (other than a separation which is 

not taken into account as workforce reduction by reason of 

subparagraph (C) or (D) of paragraph (2)) which— 

‘‘(i) is related to the permanent cessation of operations of the employer at the facility, and 

‘‘(ii) occurs during the 3-year period preceding such 

cessation. 

‘‘(C) NO ADDITION TO PREFUNDING BALANCE.—For purposes of section 303(f)(6)(B) and section 430(f)(6)(B) of the 

Internal Revenue Code of 1986, any additional contribution made under paragraph (4) shall be treated in the 

same manner as a contribution an employer is required to 

make in order to avoid a benefit reduction under paragraph (1), (2), or (4) of section 206(g) or subsection (b), (c), 

or (e) of section 436 of the Internal Revenue Code of 1986 

for the plan year.’’. 

(b) EFFECTIVE DATE.— 

(1) IN GENERAL.—The amendment made by this section shall 

apply to a cessation of operations or other event at a facility 

occurring on or after the date of enactment of this Act. 

(2) TRANSITION RULE.—An employer that had a cessation of 

operations before the date of enactment of this Act (as determined under subsection 4062(e) of the Employee Retirement 

Income Security Act of 1974 as in effect before the amendment 

made by this section), but did not enter into an arrangement 

with the Pension Benefit Guaranty Corporation to satisfy the 

requirements of such subsection (as so in effect) before such 

date of enactment, shall be permitted to make the election 

under section 4062(e)(4) of such Act (as in effect after the 

amendment made by this section) as if such cessation had occurred on such date of enactment. Such election shall be made 

not later than 30 days after such Corporation issues, on or 

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mination that a substantial cessation of operations has occurred. 

(c) DIRECTION TO THE CORPORATION.—The Pension Benefit Guaranty Corporation shall not take any enforcement, administrative, 

or other action pursuant to section 4062(e) of the Employee Retirement Income Security Act of 1974, or in connection with an agreement settling liability arising under such section, that is inconsistent with the amendment made by this section, without regard 

to whether the action relates to a cessation or other event that occurs before, on, or after the date of the enactment of this Act, unless such action is in connection with a settlement agreement that 

is in place before June 1, 2014. The Pension Benefit Guaranty Corporation shall not initiate a new enforcement action with respect 

to section 4062(e) of such Act that is inconsistent with its enforcement policy in effect on June 1, 2014. 

SEC. 2. CLARIFICATION OF THE NORMAL RETIREMENT AGE. 

(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.—Section 204 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1054) is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) the following new subsection: 

‘‘(k) SPECIAL RULE FOR DETERMINING NORMAL RETIREMENT AGE

FOR CERTAIN EXISTING DEFINED BENEFIT PLANS.— 

‘‘(1) IN GENERAL.—Notwithstanding section 3(24), an applicable plan shall not be treated as failing to meet any requirement of this title, or as failing to have a uniform normal retirement age for purposes of this title, solely because the plan provides for a normal retirement age described in paragraph (2). 

‘‘(2) APPLICABLE PLAN.—For purposes of this subsection— 

‘‘(A) IN GENERAL.—The term ‘applicable plan’ means a 

defined benefit plan the terms of which, on or before December 8, 2014, provided for a normal retirement age 

which is the earlier of— 

‘‘(i) an age otherwise permitted under section 3(24), 

or 

‘‘(ii) the age at which a participant completes the 

number of years (not less than 30 years) of benefit accrual service specified by the plan. 

A plan shall not fail to be treated as an applicable plan 

solely because the normal retirement age described in the 

preceding sentence only applied to certain participants or 

only applied to employees of certain employers in the case 

of a plan maintained by more than 1 employer. 

‘‘(B) EXPANDED APPLICATION.—Subject to subparagraph 

(C), if, after December 8, 2014, an applicable plan is 

amended to expand the application of the normal retirement age described in subparagraph (A) to additional participants or to employees of additional employers maintaining the plan, such plan shall also be treated as an applicable plan with respect to such participants or employees. 

‘‘(C) LIMITATION ON EXPANDED APPLICATION.—A defined 

benefit plan shall be an applicable plan only with respect 

to an individual who— 


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‘‘(i) is a participant in the plan on or before January 

1, 2017, or 

‘‘(ii) is an employee at any time on or before January 

1, 2017, of any employer maintaining the plan, and 

who becomes a participant in such plan after such 

date.’’. 

(b) AMENDMENT TO THE INTERNAL REVENUE CODE OF 1986.—Section 411 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: 

‘‘(f) SPECIAL RULE FOR DETERMINING NORMAL RETIREMENT AGE

FOR CERTAIN EXISTING DEFINED BENEFIT PLANS.— 

‘‘(1) IN GENERAL.—Notwithstanding subsection (a)(8), an applicable plan shall not be treated as failing to meet any requirement of this subchapter, or as failing to have a uniform 

normal retirement age for purposes of this subchapter, solely 

because the plan provides for a normal retirement age described in paragraph (2). 

‘‘(2) APPLICABLE PLAN.—For purposes of this subsection— 

‘‘(A) IN GENERAL.—The term ‘applicable plan’ means a 

defined benefit plan the terms of which, on or before December 8, 2014, provided for a normal retirement age 

which is the earlier of— 

‘‘(i) an age otherwise permitted under subsection 

(a)(8), or 

‘‘(ii) the age at which a participant completes the 

number of years (not less than 30 years) of benefit accrual service specified by the plan. 

A plan shall not fail to be treated as an applicable plan 

solely because the normal retirement age described in the 

preceding sentence only applied to certain participants or 

only applied to employees of certain employers in the case 

of a plan maintained by more than 1 employer. 

‘‘(B) EXPANDED APPLICATION.—Subject to subparagraph 

(C), if, after December 8, 2014, an applicable plan is 

amended to expand the application of the normal retirement age described in subparagraph (A) to additional participants or to employees of additional employers maintaining the plan, such plan shall also be treated as an applicable plan with respect to such participants or employees. 

‘‘(C) LIMITATION ON EXPANDED APPLICATION.—A defined 

benefit plan shall be an applicable plan only with respect 

to an individual who— 

‘‘(i) is a participant in the plan on or before January 

1, 2017, or 

‘‘(ii) is an employee at any time on or before January 

1, 2017, of any employer maintaining the plan, and 

who becomes a participant in such plan after such 

date.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to all periods before, on, and after the date of enactment of this Act. 


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SEC. 3. APPLICATION OF COOPERATIVE AND SMALL EMPLOYER CHARITY PENSION PLAN RULES TO CERTAIN CHARITABLE EMPLOYERS WHOSE PRIMARY EXEMPT PURPOSE IS PROVIDING SERVICES WITH RESPECT TO CHILDREN. 

(a) EMPLOYEE RETIREMENT INCOME AND SECURITY ACT OF

1974.— 

(1) IN GENERAL.—Section 210(f)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1060(f)(1)) is 

amended by striking ‘‘or’’ at the end of subparagraph (A), by 

striking the period at the end of subparagraph (B) and inserting ‘‘; or’’, and by inserting after subparagraph (B) the following new subparagraph: 

‘‘(C) that, as of June 25, 2010, was maintained by an employer— 

‘‘(i) described in section 501(c)(3) of such Code, 

‘‘(ii) chartered under part B of subtitle II of title 36, 

United States Code, 

‘‘(iii) with employees in at least 40 States, and 

‘‘(iv) whose primary exempt purpose is to provide 

services with respect to children.’’. 

(2) AGGREGATION RULES.—Section 210(f)(2) of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1060(f)(2)) 

is amended by striking ‘‘paragraph (1)(B)’’ and inserting ‘‘subparagraph (B) and (C) of paragraph (1)’’. 

(b) INTERNAL REVENUE CODE OF 1986.— 

(1) IN GENERAL.—Section 414(y)(1) of the Internal Revenue 

Code of 1986 is amended by striking ‘‘or’’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘‘; or’’, and by inserting after subparagraph (B) the following new subparagraph: 

‘‘(C) that, as of June 25, 2010, was maintained by an employer— 

‘‘(i) described in section 501(c)(3) of such Code, 

‘‘(ii) chartered under part B of subtitle II of title 36, 

United States Code, 

‘‘(iii) with employees in at least 40 States, and 

‘‘(iv) whose primary exempt purpose is to provide 

services with respect to children.’’. 

(2) AGGREGATION RULES.—Section 414(y)(2) of the Internal 

Revenue Code of 1986 is amended by striking ‘‘paragraph 

(1)(B)’’ and inserting ‘‘subparagraph (B) and (C) of paragraph 

(1)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect as if included in the amendments made by the Cooperative and Small Employer Charity Pension Flexibility Act (29 

U.S.C. 401 note). 

DIVISION Q—BUDGETARY EFFECTS 

SEC. 1. BUDGETARY EFFECTS. 

(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—The budgetary effects of divisions O and P shall not be entered on either PAYGO 

scorecard maintained pursuant to section 4(d) of the Statutory PayAs-You-Go Act of 2010. 


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(b) SENATE PAY-AS-YOU-GO SCORECARDS.—The budgetary effects 

of divisions O and P shall not be entered on any PAYGO scorecard 

maintained for purposes of section 201 of S. Con. Res. 21 (110th 

Congress). 

(c) CLASSIFICATION OF BUDGETARY EFFECTS.—Notwithstanding 

Rule 3 of the Budget Scorekeeping Guidelines set forth in the joint 

explanatory statement of the committee of conference accompanying Conference Report 105-217 and section 250(c)(8) of the 

Balanced Budget and Emergency Deficit Control Act of 1985, the 

budgetary effects of divisions O and P shall not be estimated— 

(1) for purposes of section 251 of the such Act; and 

(2) for purposes of paragraph 4(C) of section 3 of the Statutory Pay-as-You-Go Act of 2010 as being included in an appropriation Act. 

Æ 


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